Jul 07, 2020 / 18:35

Hanoi offers tax deferrals up to 45% of national tally

The Hanoitimes - In the final six months of the year, Hanoi would continue to boost administrative reforms in state budget collection and address concerns of the business community, said a Hanoi leader.

Hanoi’s authorities have so far waived or delayed tax payments worth VND17.5 trillion (US$757.4 million), or 45% of the total amount of tax deferrals nationwide, for enterprises, according to Nguyen Doan Toan, vice chairman of the Hanoi People’s Committee.

 Vice Chairman of the Hanoi People's Committee Nguyen Doan Toan at the meeting. 

While the Covid-19 pandemic has caused severe impacts to the economy, the majority of Hanoi’s economic indicators have regained the growing trend since May, Toan said at a government meeting on July 7.

According to Toan, Hanoi’s gross regional domestic product (GRDP) is estimated to have expanded 3.39% in the first half of 2020, the slowest 6-month growth in many years. The growth rate, however, remains among the highest nationwide and is significantly higher than the national growth of 1.81% during the period.

The city's tax revenue rose 11% year-on-year to VND143.47 trillion (US$6.16 billion), or 51.4% of the year's plan, while the budget expenditure stood at VND31.88 trillion (US$1.37 billion), or 30.9% of the yearly plan.

Toan mentioned the “Hanoi 2020 – Investment and Development Cooperation” conference, held on June 27, as one of the city’s key efforts to boost investment from domestic and foreign players. During the event, Hanoi’s authorities granted investment licenses to 229 projects worth a combined US$17.8 billion.

In the final six months of the year, Hanoi would continue to boost administrative reforms in state budget collection and address concerns of the business community; adopt e-invoice for 100% of enterprises; prevent tax base erosion; expand new revenue resources to offset Covid-19 impacts on state revenue, among others.

Moreover, the city would accelerate disbursement of public investment for higher economic growth, and tighten regular spending.

According to Toan, Hanoi would strive to timely provide support for businesses and people affected by the Covid-19 crisis; ensure transparency in state budget management.