Hanoi may lose up to US$700 million in state budget revenue on Covid-19

Amid growing uncertainties from the Covid-19 epidemic, Hanoi's Taxation Department has set up four scenarios for its state budget revenue in 2020, which could see the city lose up to VNDV16.6 trillion (US$712.14 million), Vietnam News Agency reported.

Illustrative photo.

In the first scenario when the epidemic is contained in the first quarter, domestic revenue could suffer a decline of 1.82 – 2.33% or VND4.2 – 5.4 trillion (US$180 – 231 million), excluding land-related revenue.

If the epidemic persists until the second quarter, the decline could be around 2.85 – 4.06%, or VND6.6 – 9.4 trillion (US$283.19 – 403.33 million).

For the case in which the epidemic ends in the third quarter, Hanoi’s state budget revenue could face a loss of VND10.8 – 12.7 trillion (US$463.5 – 545.04 million), or a decline of 4.67 – 5.49% in revenue.

In the extreme scenario with the epidemic lingering to the fourth quarter, the budget revenue would shrink by VND15 – 16.6 trillion (US$643.82 – 712.14 million), representing a decrease of 6.48 – 7.17% in revenue.

To mitigate negative impacts from the epidemic, the local tax authority said it would continue to reform administrative procedures and adopt an e-tax payment scheme.

Chairman of the Hanoi People’s Committee Nguyen Duc Chung requested the municipal Taxation Department to step up efforts to retrieve tax arrears and ensure greater efficiency in collecting taxes related to land.

Chung asked the authorities to provide support for enterprises hurt by the epidemic as per the guidance of Prime Minister Nguyen Xuan Phuc.

Creating convenience for taxpayers, including the adoption of e-invoice, would help prevent the spread of Covid-19 epidemic, Chung said.