The central province had posted budget revenue of VND2.645 trillion as of September 19, equivalent to 68% of the year’s target assigned by the Ministry of Finance and 43% of the target approved by the provincial People’s Council.
If the taxes and fees paid by Formosa are excluded, the budget revenue reached only 57% of the target of the provincial People’s Council and rose by 37% year-on-year.
The shrinking budget revenue of Ha Tinh was attributable to contracting tax and fee collections from foreign contractors and enterprises after new regulations on value-added, corporate and personal income taxes took effect on January 1 this year and the incident at Vung Ang Economic Zone on May 14.
Formosa paid VND1.083 trillion in tax and environmental protection fee in the January-August period last year but only VND462 billion in the same period this year.
As reported by agencies, Formosa suffered damage due to worker protests against China’s illegal deployment of a giant oil rig in Vietnam’s exclusive economic zone and continental shelf in mid-May.
An executive of Formosa told the Daily earlier this year that the company had disbursed over US$4.2 billion for the steel project in Vietnam as of the end of June but had not earned any revenue from the project.
Formosa has plans to put into operation the first blast furnace in May 2015 and the second in June 2016. However, the executive said the incident in May impacted the implementation process and the plans.
Formosa pledges to disburse an additional US$2.1 billion towards the year-end. The executive said the project will create more jobs and pay more to the budget when it comes online.
Đăng ký: VietNam News