Binh Phuoc Customs efforts to deal with challenges in budget collection

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Binh Phuoc Customs officials inspect import and export goods. Photo: N.H

Challenges in the long term

According to the report of Binh Phuoc Customs Department, in the first half of 2023, the budget revenue from some imported goods groups at the unit recorded an increase, including machinery, equipment, scrap paper, leather and leather products, footwear, products and shoes; raw materials manufacturing textile and dyeing industry, garments ... Some other groups of goods have a sharp decrease compared to the same period in 2022, such as granite, stone products with a 16% decrease, plastic and plastic products with a 18% decrease. In addition, the export turnover in the first 6 months of the year did not decrease but the revenue decreased sharply by 77%, equivalent to VND 31 billion.

Despite the positive and disadvantage elements intertwined, the budget revenue results for 6 months of Binh Phuoc Customs Department still achieved over VND 647 billion, up 16% and completed 53% of the year target.

In the last 6 months of the year, the implementation of Decree No. 44/2023/ND-CP stipulating the policy of reducing VAT from 10% to 8% applied from July 1, 2023 to the end of December 31, 2023 according to Resolution 101/2023/QH15, effective from July 1, 2023, is expected to reduce the state budget revenue of the unit for 16 groups of goods arising.

However, with the drastic solutions being implemented, Binh Phuoc Customs Department is expected to fulfill the assigned target this year of VND 1,220 billion. However, maintaining growth in the following years is a significant challenge.

According to Resolution No. 02/NQ-HDND dated March 31, 2022 of the People's Council of Binh Phuoc Province on the 5-year financial plan of 2021-2025, Binh Phuoc Customs Department is expected to be assigned a target for 2024 of VND 1,281 billion and 2025 of VND 1,351 billion. Meanwhile, the regular budget revenue from businesses that are operating stably in the area of the unit only ranges from VND 55 - 60 billion/month, equivalent to VND 600-720 billion/year. This raises the problem of ensuring the collection of revenues from non-recurring sources for the collective of Binh Phuoc Customs Department.

In addition, the annual import tax refund accounts for a large part of the total revenue of the unit. Especially, tax refund for enterprises importing under type A12 that import raw materials on the spot from other enterprises operating in the form of export production, then continue to put into production and export products to foreign countries or into the non-tariff zones as prescribed in Decree 18/2021/ND-CP dated March 11, 2021. Accordingly, each year, the unit will refund about VND 70 billion.

Attempts to solve challenges

Faced with the challenges posed in revenue collection, Binh Phuoc Customs Department determined that the strengthening of administrative procedure reform, customs modernization, trade facilitation and import and export activities is the key solution to nurture revenue. Accordingly, the unit develops problems, monitoring and management programs to support customs officers in performing their duties, thereby helping to shorten the time and cost of goods clearance.

In addition, the annual dialogue programs and forums are also effective in propagating legal documents and policies to the business community in the locality, helping businesses to be aware of the situation correctly and completely to comply, bring efficiency in production and business activities. Binh Phuoc Customs Department also actively organizes and assigns officials and employees to manage and take care of each enterprise, in charge of accompanying enterprises, and promptly solving problems in the process of carrying out customs procedures.

In addition to receiving problems from businesses, units under Binh Phuoc Customs Department also actively review and record businesses' problems to report to the competent authorities. Especially to review the problems and inadequacies in the process of implementing regulations on management and specialized inspection of imported and exported goods. In which, the unit reported to Binh Phuoc Provincial People's Committee, and reported to the Ministry of Construction the shortcomings in quality inspection procedures for imported goods being construction materials; propose the General Department of Customs, Binh Phuoc Provincial People's Committee to have opinions on food safety inspection for cashew nuts imported from Africa; report to the General Department of Customs about shortcomings in the post-clearance revised and supplemented declaration instructions for goods subject to specialized inspection for cashew products.

Besides measures to nurture existing revenue, Binh Phuoc Customs Department is also constantly looking for new revenue sources to increase state budget revenue. Accordingly, Binh Phuoc Customs Department actively approaches personnel of new investment projects right from the moment when businesses have the need to contact investment in the province to advise and attract these enterprises to carry out procedures right from the stage of importing machinery and equipment.

In particular, according to Ms. Nguyen Thi Duyen, Head of Operations Department - Binh Phuoc Customs Department, the province currently has nearly 245,000 hectares of rubber trees, an increase of 27% over the same period in 2022. This shows that the source of wood comes from rubber trees in the area, especially the source of liquidation a lot. However, currently, the unit has not been able to exploit this revenue source because businesses in the area sell to other businesses for export or carry out procedures at other units. Accordingly, Binh Phuoc Customs Department is actively approaching to attract these enterprises to carry out procedures.