Businesses in Vietnam owed tax arrears worth nearly VND20 trillion (USD957.85 million) by the end of September this year, one official has said.
Binh Duong custom officials inspecting imported production materials
Tran Van Phu, Deputy Director of the General Department of Taxation, said at the Ministry of Finance’s meeting on October 11, that the figure accounts for 6.8% of the country’s gross domestic income.
State-owned enterprises owe around VND2.6 trillion (USD124.52 million), representing 13% of the total amount, he noted.
Phu attributed the huge tax debts to economic difficulties. However, the ministry is making efforts to lower the figure to less than 5% of the gross domestic income.
According to the ministry’s report, the country’s gross domestic income totalled VND291.9 trillion (USD13.97 billion) in the first nine months of the year, 63.8% of the ministry’s estimate for this year's state budget.
The report also showed that state budget revenues reached VND498.49 trillion (USD23.87 billion) during the same nine-month period, 67.3% of the estimates for this year, showing a 1.3% increase from the same period last year.
The state budget revenues were smaller than in years before the economic slowdown.
The ministry has allowed value-added tax extensions for 190,280 enterprises, totaling over VND11 trillion (USD526.81 million) for the period between April and June.
Around 71,630 enterprises benefited from an extension of corporate income taxes, totaling VND2.933 trillion (USD140.46 million) during the period.
The ministry cut land use taxes for 2,425 enterprises in half for 2012, valued at VND250.3 billion (USD11.98 million).
It also exempted and return business license taxes for 2012 worth VND10 billion (USD478,927) for 33,510 household businesses, including those involved in seafood and salt production.
By the end of September 2012, 53 state corporations and enterprises had mapped out business restructuring plans, of which, 23 got approval from authorities.
Currently economic groups are speeding up the implementation of plans to slash 5%-10% of their management expenses as well as reduce business costs in a bid to lower product prices, enhance business efficiency and step up privatisation.
To date, 83 state corporations and economic groups have registered to cut their expenses by a total VND12.486 trillion (USD597.98 million). A total of 5,856 enterprises have been rearranged.
