The Tax Department of HCM City has decided to suspend its decision to collect VND3.14 trillion (US$134.8 million) from Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco) for the company’s special sales tax violations.

Saigon Beer, a product of Sabeco. HCM City’s tax authority decided to suspend its decision to collect Sabeco’s tax bill of VND3.14 trillion ($315 million). — Photo cafef.vn

The suspension was made following the Government Office’s official letter, dated January 2, in which Prime Minister Nguyen Xuan Phuc requested the Ministry of Finance and the People’s Committee of HCM City to direct the City’s Tax Department to suspend enforcement in the case.

On December 24, the HCM City Tax Department announced payment of VND3.14 trillion was due for Sabeco’s overdue payments and monetary penalties for special sales tax in the period from 2007-15, according to the conclusions of the State Audit Office and the Government Inspectorate.

However, as the company did not pay this amount after the notice, the tax department on December 28 issued a decision to compel the company to pay fines by taking money from its bank accounts.

Sabeco sent a document to Prime Minister calling for help and saying the tax department’s decisions were against the law.

According to Tran Ngoc Tam, General Director of HCM City’s Tax Department, the tax authority had yet to collect the money as the company’s bank accounts registered on the Department of Planning and Investment had inadequate funds. Therefore, it placed a block on these accounts.

The Prime Minister is directing ministries and agencies to review the petition submit their findings to the Government.

Shares of Sabeco, code SAB on the Ho Chi Minh Stock Exchange, lost nearly 10 per cent last week. Its shares rose again on Monday to trade at VND244,000 ($10.47) per share. — VNS