Sep 08, 2021 / 18:28

Hanoi provides support worth over US$830 million for businesses

The support comes at a time when the Covid-19 situation remains serious in Hanoi, negatively affecting businesses operation.

Hanoi’s authorities have so far extended payment for taxes and land rental fees worth nearly VND19 trillion ($831 million) for businesses affected by the Covid-19 pandemic.

 Production at New Wing Interconnect Technology in Van Trung Industrial Park. Photo: Minh Linh

According to the municipal Department of Taxation, the city received nearly 30,000 requests for extension of value-added tax payment with a total amount of around VND8.3 trillion ($363 million) as of August 31, representing a surge of 30% against the previous month. The city also processed 1,351 applications for delaying payment of land rental fees worth VND1.04 trillion ($45.7 million), up 17% month-on-month.

Chairman of the Hanoi People’s Committee Chu Ngoc Anh previously issued a directive No.20/CD-UBND urging local authorities to step up efforts in containing the pandemic for economic recovery.

In the directive, the city’s mayor requested all departments and administrative units to continue supporting businesses to ensure safety and avoid disruption to the value chains.

During the first eight months of 2021, Hanoi registered a total of 16,600 newly established enterprises with a combined subscribed capital of VND224.8 trillion ($9.83 billion), down 7% in number and value year-on-year.

The number of enterprises temporarily suspending operation rose by 19% year-on-year during the period, while other 2,200 completed the dissolution process or an increase of 36%.

“Timely implementation of Government support, in this case, an extension of payment of taxes and land rental fees, would help enterprises stay afloat and have the financial resources to pay workers’ salaries,” a representative from Sun Travel- a  travel company told The Hanoi Times.

Director of CNC Technology Company Nguyen Trong Luc said during this difficult economic situation, any supporting policy would provide much-needed help for businesses.

“The municipal Taxation Department has been active in providing assistance for us to complete the application for the support,” Luc told The Hanoi Times.

As the pandemic keeps piling pressure on the business community, the Ministry of Finance has proposed more substantial measures to aid enterprises this year, including a 30% cut in corporate income tax, 50% reduction of tax payments for business households in the third and fourth quarters, and 30% in value-added tax for certain service sectors.

Such new measures would lead to an estimated decline of VND20 trillion ($870 million) in State budget revenue.

“Hanoi is committed to containing the Covid-19 outbreak to mitigate its impacts on the economy and people’s lives. The city would revise growth scenarios to better reflect the current practices and try its best to realize all economic targets,” Secretary of the Hanoi Party Committee Dinh Tien Dung said during a meeting with Prime Minister Pham Minh Chinh on July 19.