Tax revenue from private companies slightly increases in 2020

The Ho Chi Minh City Tax Department yesterday organized a meeting to review its task in 2020 and implementation of its duties in 2021. Total tax revenue in the city was more than VND266,600 billion, equivalent to 91.6 percent of the whole year’s estimate, but down by 4.7 percent against the previous year.

Despite negative impact of the coronavirus pandemic in 2020, tax collection from private enterprises reached VND67,770 billion, an increase of 1.5 percent. Of domestic tax collection excluding oil, revenues from production and business decreased to VND155,266 billion, dropping by 1.4 percent.

Revenues from state economic sector hit VND24,100 billion, a reduction of 5.8 percent while that from foreign direct investment enterprises was VND63,350 billion, a fall of 2.7 percent and from private enterprises VND67,770 billion, an increase of 1.5 percent.

According to the Tax Department’s figure, about 29,700 enterprises were newly established in 2020 while nearly 26,000 enterprises shut down and over 8,500 enterprises temporarily stopped their operation. As of 2020, over 253,000 have been operating in the city, dropping by 0,4 percent against the prior year.

Speaking at the meeting, Deputy Chairwoman of the municipal People’s Committee Vo Thi Thang highly valued the tax sector’s efforts in 2020. In 2021, the Central and the city People’s Council assigned the city to collect VND364,893 billion; therefore, the Department of Tax should focus on adopting different solutions to complete its assigned mission. Moreover, the tax department must enhance digital transformation to contribute to construction of a smart city and building of urban administration.