Local governments in Vietnam have 3 main
sources of revenue:
– Revenue retained 100% by local
authorities, such as taxes and fees
related to lands, local fees and
charges…;
– Revenue shared between local
authorities and central government ,
such as VAT (except on imports), CIT
(except on enterprises with uniform
accounting) or PIT; excise tax on
domestic goods...
– Transfers from upper levels of
government
• Share of local revenue in total government
revenue increased from 28.1% in 2003 to
38.4% in 2012
• Revenue retained 100% by local authorities
mainly comes from: Land use levies and
lotteries, other items take very small shares.