Hanoi sees tax collection drop due to stagnant property market

Data from Tax Office in Hanoi shows that the City’s tax collection reached VND49.79 trillion in the first five months of this year, accounting for only 33.2 percent of the target, and 85.5 percent of that in the same period last year.

Domestic incomings, excluding from crude oil and land use tax, touched VND42.38 trillion, accounting for 31.8 percent of the target, and 80.3 percent of that in the same period last year.

As for incomings from the real estate market, the tax collectors have just collected around VND1.87 trillion of land use tax, accounting for 15.7 percent of the target and 61 percent of that in 2012.

As for incomings from land lease, collection is VND495 billion, up 31.35 percent year-on-year, but merely 45 percent of the target.

Tax collectors forecast that with such stagnation in the property market, real estate companies will have no revenue to pay tax, which will seriously affect the national budget of the City.

By T.Van – Translated by Thuy Doan

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