HCM City: VAT collection achieves lowest growth in the last 3 years

The transaction at HCM City Tax Department. Photo: T.H

According to the Ho Chi Minh City Tax Department, as of the end of 9/2017, this unit collected VAT which increased by 7.7% over the same period. In that, the private commercial enterprise's sector has the highest collection rate in 4 economic sectors, which is increased by 13.03%; FDI enterprise sector increased by 10.91% over the same period; central and local state-owned enterprises decreased by 12.48% and 11.11% over the same period respectively.

However, according to the HCM City Tax Department, this is the lowest growth rate in the last three years (9 months of 2016 increased 13.32% over the same period of 2015, 9 months of 2015 increased 12, 61% over the same period of 2014).

The reason is that in the first 9 months of 2016, VAT collection from real estate business achieved quite a good result, but in the first nine months of 2017, collection from this activity decreased sharply. In addition, some enterprises have reduced the amount of payment such as: Mobifone Service Company region 2 - Branch of Vietnam Mobile Telecom Service Corporation decreased by 79.06%; Saigon Beer - Alcohol - Beverage Corporation reduced by 5.07% ...