HCM City faces budget collection pressure in 2014

Ho Chi Minh City has been assigned to collect VND226 trillion (US$10.7 billion) for the State budget in 2014, or 29 percent of the total revenues of the state coffer.

The figure is down 4.45 percent from the 2013 estimate but it is still a tough task for the city considering a slew of new policies that can affect collection of taxes and fees, according to Director of the municipal Department of Finance Dao Thi Huong Lan. 

Speaking at a conference on January 2 on measures to carry out tasks in the New Year, Lan cited the amended Law on Corporate Income Tax as an example. Under the law, corporate income tax is revised down to 22 percent from the previous 25 percent. The value-added tax (VAT) has also been cut, and automobile registration fee is reduced from 15 percent to 10 percent. 

Chairman of the municipal People’s Committee Le Hoang Quan urged departments, agencies and districts to devise their concrete plan so as to achieve the targets set for the year. 

He noted that while the quota for State budget collection is lower than that of 2013, caution is needed and all possible economic developments should be taken into account. 

The city mayor also required sectors and local administrations to come up with ways to stimulate production while promoting trade both at home and overseas markets. 

Attention will continue to be paid to health care, education-training, culture, science-technology and social welfare, he said. 

Last year, HCM City contributed US$11.3 billion to the State budget, meeting 100.41 percent of the estimate, up 12.44 percent from that of 2012. 

This year, the city aims for a GDP growth of 9.5-10 percent and a 10 percent increase in export turnover. The rate of poor households according to the new poverty line of US$760 a year is projected at 6.8 percent.

VNA/VOV online