HA NOI (Biz Hub) — Capital city authorities are facing a tax shortfall from local businesses, especially in real estate, as the country continues to battle the global economic downturn, according to the Ha Noi Taxation Department.

As of May, the city tax department had collected VND1.873 billion (US$89 million) in land use tax, just 61 per cent of the figure from the same period last year.

Tax collection from land leases jumped by VND495 billion - an increase of 31.35 per cent over the same period last year - but only accounted for 45 per cent of the total estimated tax collection.

Tax collection from non-agricultural land use is estimated to raise VND42 billion, accounting for 17.1 per cent of the total collection.

The Ha Noi Taxation Department said it had continued to work closely with relevant agencies in managing State revenues in order to promptly collect arrears.

The department predicted that if the real estate market remained sluggish, real estate businesses would not have enough money to pay their taxes. —VNS