Customs’ revenue plunges in first quarter
Nghe An Customs’ revenue affected by Covid-19 pandemic | |
Ha Tinh Customs’ revenue down 40 percent | |
Customs’ revenue decreases 7.36% compared to 2019 |
Correlation of budget revenue updated to March 30, 2019 and 2020 of seven customs departments with the largest revenue targets in 2020 (from VND 10,000 billion or more) and the whole Customs sector (Units: VND "billion"). Chart: T. Binh. |
Revenue reduced by VND7,336 billion
According to an assessment from the General Department of Vietnam Customs, in the first quarter, the total import and export value of FDI enterprises reached USD75.4 billion, accounting for 63% of the total value of the country. Of which, the export value of this sector was USD41.54 billion and import value was USD33.86 billion.
The total taxable import and export turnover of the country in the first quarter reached USD24.97 billion, increasing by 2.38% compared to 2019. Of which, taxable export turnover was USD1.56 billion, increasing by 28.6%; taxable import turnover was USD23.41 billion, increasing by 1% compared to 2019.
Specifically, export turnover of some major items such as crude oil reached USD580 million, increasing by 10.6%; wood and wooden products reached USD435.6 million, increasing by 117.4%; coal reached USD30.5 million, increasing by 606.6%; clinker and cement reached USD164 million, decreasing by 11.8% compared to 2019. However, import turnover of items that contributed great revenue to the State budget showed signs of a sharp decrease compared to 2019, such as machinery, equipment, tools and spare parts, reaching nearly USD4 billion, down by 11.2%. Import turnover of iron and steel products was USD1.4 billion, decreasing by 13.9%, and plastic materials reached USD1.2 billion, decreasing by 7.9 % compared to 2019.
With the significant impact of the Covid-19 pandemic, turnover of major items fell sharply, leading to the Customs’ revenue in the first quarter of only VND77,000 billion, equal to 22.78% of the estimate and 21.69% of the desired target, decreasing by 8.7% compared to 2019 (VND84,336 billion), equivalent to VND7,336 billion.
According to the Import and Export Duty Department, the reason for the sharp decline in the Customs sector’s revenue is that the turnover of some major items with high revenues often dropped sharply, such as CBU cars decreased by VND4,692 billion; machinery, equipment and spare parts decreased by VND1,025 billion; computers, electronic products and components fell VND1,554 billion; iron and steel of all kinds decreased by VND515 billion.
Another cause of the difficult situation of goods import and export is that the Covid-19 pandemic has dangerous and explosive developments in some major countries such as China, Korea, Japan, and European and American countries, which have affected the global economy and Vietnam's economy, causing disruptions in production, business, trade and import-export activities due to the closure of border gates and airports to prevent the spread of the pandemic, that indirectly affected the state budget revenue.
For example, in the management area of Ho Chi Minh City Customs Department, the department’s revenue in the first quarter reached VND23,524 billion, reaching 20.46% of the estimate. Meanwhile, in the first quarter of 2019, the revenue was VND27,002 billion. The department’s revenue decreased by 12.88% compared to 2019.
In Hai Phong Customs Department, the department’s revenue in the first quarter reached VND4,865 billion, while in the first quarter of 2019, the revenue was VND13,458 billion. Thus, the revenue decreased 17.11% compared to 2019.
In Lang Son Customs Department, which is seriously affected by the Covid-19 pandemic, in the first quarter the department collected only VND567.8 billion, down 20.35% compared to the same period in 2019.
According to the leader of the Import-Export Duty Department, if the Covid-19 pandemic continues, the import-export turnover of many major items that contribute a large amount of revenue to the budget will continue to decline sharply.
Customs operation at Hai Phong Seaport Customs Branch of Zone 3. Photo: T.B |
Perform solutions synchronously
Regarding specific solutions on budget solution amid the Covid-19 pandemic, the representative of the Import and Export Duty Department said that the General Department of Vietnam Customs promptly issued Directive No. 1040/CT-TCHQ requesting units to perform solutions synchronously and drastically to facilitate trade, improve the efficiency of state management, prevent revenue losses in performing the budget revenue task in 2020.
The General Department of Vietnam Customs has requested subordinate units to comply with the Government's Resolution No. 01/ NQ-CP on the key tasks and solutions for implementing the plan on socio-economic development and budget estimate for 2020. Along with that, the facilitation of import and export activities continues to be prioritized through implementing measures to shorten the time for tax payment and customs clearance and goods release such as: promoting cooperation with commercial banks, expanding the program on e-tax payment 24/7 and Pre-Authorized Tax Payment program, maintaining and improving the operational efficiency of the Customs-business working group.
To drastically implement solutions for revenue collection, the General Department of Vietnam Customs issued Decision 924/QD-TCHQ dated March 27 assigning the target of collecting and handling tax debts to municipal and provincial customs departments.
Accordingly, the GDVC requests departments to focus on reviewing and grasping tax debts; classifying recoverable tax debt group and irrecoverable tax debt group. The GDVC also regularly monitors and urges departments to implement solutions on tax debt collection in line with reality; monthly and quarterly monitors the collection and handling of tax debts; strengthening management measures for conditional tax exemption and reduction such as imported goods processed for export, imported goods for production of processed goods, imported goods for production of export goods; prevent new tax debt due to the business owner vacating the business address or leaving the country (for the business owner is a foreigner).
Facing the complex development of the Covid-19 pandemic, to facilitate and remove difficulties for enterprises affected by the pandemic and implement Directive 11/CT-TTg dated March 4, 2020, the GDVC does not organize periodic inspection in 2020 for enterprises without signs of violation. At the same time, prevent the taking advantage of this policy of enterprises to violate the law. The GDVC directed municipal and provincial customs departments to take measures to enhance the prevention and control of the Covid-19 pandemic, to promote cross-border import and export activities.
The Customs sector is implementing solutions to quickly clear import and export goods, creating favorable conditions for enterprises' production and business activities; actively coordinate with competent forces, authorities and local authorities to strictly control and prevent Covid-19. In particular, the customs units have implemented solutions and initiatives to clear goods but still ensure the prevention of Covid-19.
Related News
Kien Giang Customs’ revenue reaches over 190% of target
10:36 | 02/11/2024 Customs
Revise regulations on implementing administrative procedures under the National Single Window
09:28 | 31/10/2024 Customs
Latest News
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
More News
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
17:29 | 03/11/2024 Import-Export
Vietnam and UAE trade sees billion-dollar growth
07:15 | 03/11/2024 Import-Export
Sharing responsibility for ensuring security and safety of the supply chain
07:13 | 03/11/2024 Import-Export
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export
Your care
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export