Hanoi's budget revenues soar in 1H/2024

Hanoi's budget revenues soar in 1H/2024

The tax authorities will continue to dialogue with businesses to tackle problems and create the optimal environment for citizens and businesses.

The Hanoi Tax Department reported half-year budget revenues of over VND245 trillion (US$9.7 billion), up 18.5% year-on-year and reaching 64.2% of the annual target.

Vietnam is seeing a rise in the popularity of online shopping. Photo: Pham Hung/The Hanoi Times

The agency's main focus was business houses, individuals, and companies making money from online sales. In addition, the department also worked with e-commerce platforms, commercial banks, and logistics providers to build a comprehensive database.

Based on the results of the government's Project 06 on the standardization of the tax code, the department has identified 418 businesses that own e-commerce platforms, 668 companies that deal with digital products and content, and 54 firms that provide accommodation services, and consolidated the identification database of over 366,000 online shops, their declared income and the tax paid.

Speaking at a relevant conference this month, Vu Manh Cuong, Director of the Hanoi Department of Taxation, said that the department has worked with the Hoan Kiem District People's Committee to pilot e-commerce tax management in the district, and has helped individuals and businesses declare and pay taxes according to the law. This pilot program has allowed the tax authorities to better understand the e-commerce sector and strengthen their management capabilities.

"We will continue to expand this model to other districts to enhance tax compliance and revenue collection from Hanoi's fast-growing e-commerce industry," he stressed.

Cuong also said that the agency has developed a website to allow simple, fast, and accurate access to a database, which has helped improve the efficiency of tax management for e-commerce activities.

Tax revenue from e-commerce activities in Hanoi in the first half of 2024 reached approximately VND10 trillion, of which VND2.5 trillion ($98.8 million) came from e-commerce platforms, VND6.7 trillion ($264.7 million) from enterprises, and VND700 billion ($27.6 million) from individual businesses.

The tax authorities will continue to engage in dialogue with businesses, offer assistance in solving their problems, and create the optimal environment for citizens and businesses to comply with tax laws and policies.

The Hanoi Department of Taxation continues to streamline personal tax identification data under the government's Project 06 and is exploring ways to further digitize and automate processes to better serve citizens and businesses, and improve the quality of e-filing, payment, and refund services.

The department will expedite the VAT refund process and implement risk-based management in classifying refund cases to ensure refunds are issued to the proper recipients.

Hanoi Times