HCMC – The coronavirus pandemic has put a crimp on household businesses in HCMC, forcing over 18,620 of them out of business over the first four months of this year.
Tax collections from household businesses have plunged due to the impact of Covid-19, the disease caused by the coronavirus, according to the HCMC Tax Department.
Between January and April, the number of household businesses registering for suspension owing to the pandemic accounted for 7.5% of the city’s total operational ones.
The city’s tax department has offered an exemption from tax payments of VND12.7 billion each month to these suspended household businesses, the local media reported.
Apart from this, as a series of individual and household businesses suspended their operations following the prime minister’s Directive 15, tax collection revenue from these businesses dropped by an additional VND82.8 billion in April.
As for enterprises active in the city, the first four months of 2020 saw over 1,520 firms register for dissolution, soaring by 54.8% year-on-year. Meanwhile, the city attracted a mere US$1.05 billion in foreign investment, dipping by 33% against the year-ago period.
The HCMC Tax Department noted that stagnant business activities due to the social distancing measures to prevent the spread of Covid-19 drove the total tax revenue in the four-month period down by 7.9% year-on-year. The total revenue met only 30% of the target.
In January-April, the city witnessed revenue from multiple types of taxes tumble. Corporate income tax revenue, for example, fell by 11.08% year-on-year, while the revenue from value added taxes inched down by 6.3%.