State budget revenue from enterprises seen dropping
State budget revenue from enterprises seen dropping
Tax collections from State-owned, foreign direct investment and local private enterprises have been estimated to fall 5.9%, 4.1% and 1.9% this year, respectively, according to a report by the National Assembly Financial and Budget Committee.
According to the report on State budget collection and spending for this year and estimates for next year, delivered at the National Assembly's (NA) eighth sitting on October 21, the State budget revenue may be VND46 trillion (US$2 billion) or 3.3% higher than targeted for this year. This will be the fourth consecutive year that the tax revenue exceeds the target.
The report by the NA Financial and Budget Committee also showed that the three groups of enterprises may cause a State budget deficit of some VND23 trillion. This will be the third straight year that the tax collections from the three sectors are estimated to be lower than the targets, even though the NA had set lower targets compared with those in the preceding three years.
In addition, the Law on Support for Small and Medium Enterprises came into force on January 1 last year, but the State budget revenue from private businesses might dip by VND4.5 trillion, mainly due to difficulties with production and business activities.
The NA Financial and Budget Committee proposed reviewing preferential policies for all enterprises and amending unreasonable ones.
Despite declines in State budget revenue from enterprises, the Government still targeted an increase in the tax collections from State-owned, foreign direct investment and private enterprises by 6.3%, 11.6% and 14.3% over the estimates this year, respectively.
