Tax cuts hit State budget revenue
Tax cuts hit State budget revenue
tate Budget collection in the capital city fell by about VND10 trillion (US$476.1 million) during the first half of the year due to the Government's preferential policies on tax exemptions, reductions and extensions.
Thai Dung Tien, deputy head of the city's Taxation Department, said more than 4,500 organisations and households benefited from reduced land-hire taxes, with reductions totalling VND1 trillion ($47.6 million).
The department received 33 applications to extend tax payments on land-use rights. The proposed total amount was VND9.2 trillion ($438 million), accounting for 68 per cent of all land-use rights taxes.
The department assessed 28 applications out of the total with tax extensions on land-use rights at VND1.5 trillion ($71.4 million).
In addition, the department also extended payment on value-added tax during the first three months of this year to more than 13,200 businesses with a total of VND456.4 million ($21,700) in reduced payments.
More than 3,700 businesses also received extensions on payment of corporate income tax, totalling VND61.8 million ($2,900).
About 8,300 vehicles benefited from reduced registration fees in April, with savings totalling VND248 million ($11,800).
In May, more than 8,200 vehicles were given registration fee reductions totalling VND275 million ($13,000). Tax on environment protection for businesses was also reduced by VND26.4 billion ($1.2 million).
Tien said the tax reductions and exemptions reflected the city's efforts to support Government policies for businesses.
However, the department said it would strengthen supervision of taxpayers who enjoyed exemptions, reductions and extensions to prevent businesses unfairly taking advantage of these policies.
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