Revenue from business and production gained a positive growth

Transactions at the HCMC Tax Department. Photo: Nguyen Hue

According to statistics of the HCMC Tax Department, the revenue from business and production in October 2017 achieved 108.168 billion VND, accounting for nearly 72% of the estimate, up by 10% over the same period in 2016, occupying 60.61% of the domestic revenue except for revenue from the crude oil. In which, the revenue mainly came from the private economic sector. The FDI sector gained the highest growth with 48,270 billion VND, up by 16%, followed by the non-state business sector with a collected amount of 41,764 billion VND, up over 15% from the same period in 2016.

Analysing the revenue from main taxes, the HCMC Tax Department said that most of the main revenues rose compare the same period last year. Particularly, VAT rose by 7%. The FDI sector achieved the highest revenue (12.31%); the non-state business sector rose over 11%. The special consumption tax (SCT) rose over 14% from the same period last year, mainly from the significant increase in revenue of the FDI sector (nearly 30%). Besides, the consumption of some commodities subject to SCT rose over the same period last year and the SCT rate for some commodities rose.

Corporate income tax (CIT) also grew over the same period last year, mainly came from FDI sector (up over 19%) and the non-state business sector (up nearly 22%). Personal income tax (PIT) increased by over 20% against the same period last year. Most of the PIT revenues from different sources increased significantly, especially PIT from salary, wages increased over 19% over the same period last year. This was the highest proportion of total PIT revenue (over 75%). The reason was that over the past years, the tax authorities had applied many measures to manage the tax collection for individuals with incomes. Especially, the centralized tax administration system had improved the efficiency of revenue exploitation and significantly increased the number of taxpayers and tax payment. In addition, in recent years, the real estate market had developed more, the income from salaries, wages and commissions of individuals in this field had increased significantly.

According to the assessment of the HCMC Tax Department, the high growth of budget revenue was due to the development of the city’s economy in the first 10 months and the improvement of the investment environment. The city leaders always accompanied enterprises to remove difficulties, create the most favorable environment for the development of production, business and investment of enterprises. In particular, the city had focused on supporting the development of a start-up ecosystem and promoting creative start-ups and boosting trade activities, seeking new markets and improving the competitiveness of the domestic enterprises.

In addition, in the first 10 months of 2017, the socio-economic situation in the city remained stable, the industrial production index rose by 7.75%, the total retail sales of goods and services rose by 11.59 %, and the total export turnover rose by 23.68% over the same period last year. Especially, the number of newly established enterprises has increased in both quantity and registered capitals. According to the HCMC Tax Department, in the first ten months of the year, 34,585 enterprises registered for their new establishment, bringing the number of enterprises in the city to 204,526 enterprises. In which, in July and August, the number of newly established enterprises has continuously increased (over 2,000 enterprises). In particular, new enterprises mainly concentrated in the District 1, Go Vap District and Tan Binh District.