Customs sector: Revenue collection challenges are emerging

VCN - Under pressure from the total taxable import-export turnover of the whole country and the turnover of some high-value imported goods resutled in high tax rates in August decreased sharply, causing the state revenue collection of the Customs sector to signal difficulties in the last months of the year.

August drop sharply

Despite achieving VND 274,035 billion in total state revenue in the first eight months of 2024, equaling 73.1% of the assigned target and representing a 13.1% increase compared to the same period in 2023, the total revenue of the entire sector in August only reached VND 34,379 billion, a decrease of 9% compared to July 2024.

Assessing the reasons, a representative from the Import-Export Duty Department said that the total taxable import-export turnover in August decreased by 1.9% compared to July, of which taxable import turnover decreased by 1.5%.

Notably, the import turnover of several large-value, high-tariff items decreased, such as coal decreased by 45% in volume and 19.7% in value, leading to a revenue decrease of VND 430 billion; crude oil decreased by 11.8% in volume and 12.9% in value, leading to a revenue decrease of VND 275 billion; various types of petrol decreased by 25.6% in volume and 20.1% in value, leading to a revenue decrease of VND 571 billion; phones and components decreased by 21.2% in value, leading to a revenue decrease of VND 210 billion; and various types of complete automobiles decreased by 12.3% in volume and 11.8% in value, leading to a revenue decrease of VND 597 billion compared to July 2024.

Vung Ang Customs coordinates to inspect procedures for cargo transport vehicles. Photo: Thế Mạnh
Vung Ang Customs coordinates to inspect and carry out procedures for cargo transport vehicles. Photo: Thế Mạnh

Despite being a region with the most stable revenue in the Central region, according to the Ha Tinh Customs Department, as of August 31, 2024, the total import-export turnover through the area reached US$3,991.39 million, a decrease of 6.6%, of which the export turnover recorded a decrease of up to 17.2% (equivalent to US$1,628.7 million).

According to the Ha Tinh Customs Department, the impact of the decreased turnover led to a state revenue of VND5,991.89 billion in the first eight months of the year. Although the revenue still increased compared to the same period in 2023 and compared to July 2024, the growth rate is showing signs of slowing down and a downward trend in the last months of the year.

Cao Duc Thang, Head of Technical Division of Ha Tinh Customs, shared that the reason is due to the landslide incident on National Highway 8 leading to Cau Treo international border gate since August 2023 has not been completely handled, directly affecting the state revenue through Ha Tinh province. In addition, the number 8 route on the Lao side has been downgraded from a national highway to a provincial road, so the allowable load has been reduced (according to Notification No. 09660, allowing the transportation of goods is 43.2 tons including both goods and vehicle weight), while Vietnamese tractor-trailer trucks are allowed to circulate from 49 tons to 51 tons (including both goods and vehicle weight), so cargo trucks have not been circulating due to the overload issue and the weighing station on the Lao side.

In particular, as a unit with the largest proportion in the structure of import-export budget revenue nationwide, from the beginning of the year, the state budget collection of Ho Chi Minh City Customs Department has encountered many difficulties and recorded many months with significant decreases in revenue.

According to the assessment, the decline in revenue in the area managed by Ho Chi Minh City Customs Department is mainly due to weak market supply and demand, a large inventory of imported cars, and reductions in import taxes and VAT, as well as refunds for enterprises. Moreover, the policy of reducing VAT (from 10% to 8%) for some goods has also had a significant impact on the revenue in Ho Chi Minh City.

In addition, in the first eight months, Ho Chi Minh City Customs Department has carried out tax refund procedures and tax exemptions amounting to over VND 10,300 billion for enterprises. At the same time, it has implemented VAT refunds for goods of foreigners and overseas Vietnamese when exiting, totaling over VND 65 billion.

Proactively assess revenue sources

A representative from the Import-Export Duty Department emphasized that the difficulties of the economic situation, as well as the consumption of goods, especially the damage caused by Typhoon Yagi and floods that have been occurring in most northern provinces, have shown that the state revenue from import-export activities in the last four months of the year faces many challenges for the Customs sector.

Meanwhile, from now until the end of the year, the VAT reduction policy continues to be implemented, expected to reduce revenue by about VND 18,000 billion. Besides, the Customs sector's implementation of the import tax refund cycle for auto parts will also reduce the total revenue by about VND 6,000 billion. These are quite big challenges for the revenue collection task in the import-export activities of the Customs sector.

Accordingly, to ensure effective revenue collection, the General Department of Vietnam Customs requires units across the sector to resolutely deploy digital transformation, especially promoting the application of digital transformation in budget revenue and expenditure, enhancing the efficiency and effectiveness of revenue and expenditure management; ensuring accurate, full, and timely collection, expanding the revenue base and combating tax evasion, especially from e-commerce, to compensate for the reduced revenue due to the implementation of support policies; striving to complete the assigned target at the highest level.

To make efforts to implement solutions to strive to complete the revenue task at the highest level, Ha Tinh Customs Department has directed units throughout the department to continue closely following and strictly implementing the regulations of all levels on facilitating trade, improving the effectiveness of state management, and resolutely implementing the revenue task.

Specifically, it requires border gate customs departments to focus on and implement solutions, such as administrative procedure reform; attracting enterprises to participate in import-export activities through border gates in the area, creating new and effective revenue sources; implementing measures to combat state revenue loss through the inspection and supervision of customs procedures, tax management, post-clearance audits, specialized inspections, internal audits, and the fight against smuggling and trade fraud.

In addition, Ha Tinh Customs Department is also actively strengthening the work of collecting information from enterprises and large investment projects to grasp information on import-export activities, import-export turnover... as a basis for assessing revenue capacity and building a realistic state revenue forecast for 2025.

Ho Chi Minh City Customs Department also said it will strengthen the fight against revenue loss through price and tax to ensure the best implementation of the 2024 state revenue task. Along with that, the Department also focuses on inspecting cases with signs of fraud and tax evasion; strengthening post-clearance audits for high-risk consignments, especially consignments that are exempt, reduced, or refunded; conducting specialized inspections for enterprises with violations of import-export taxes...

By Nụ Bùi/Thanh Thuy

Related News

Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Minister of Finance Nguyen Van Thang: Facilitating trade, ensuring national security, and preventing budget losses

Minister of Finance Nguyen Van Thang: Facilitating trade, ensuring national security, and preventing budget losses

VCN - Vietnam's total import-export turnover for 2024 is estimated to reach US$782.33 billion, a remarkable achievement driven by the proactive and dedicated efforts of officials and staff at the General Department of Vietnam Customs.
Hai Phong Customs processes over 250,000 declarations in November

Hai Phong Customs processes over 250,000 declarations in November

VCN - In November 2024, the Hai Phong Customs Department processed 251,983 import-export declarations.
Binh Duong Customs surpasses budget revenue target by over VND16.8 Trillion

Binh Duong Customs surpasses budget revenue target by over VND16.8 Trillion

VCN - As of November 30, 2024, the total budget revenue collected by the Binh Duong Customs Department reached VND16.872 trillion, achieving 100.43% of the assigned target and 98.67% of the aspirational target, representing a 14.45% increase compared to the same period last year.

Latest News

Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN- The Director General of the General Department of Vietnam Customs (GDVC), Mr Nguyen Van Tho, and the Commissioner of Korea Customs Service (KCS), Mr Ko Kwang Hyo, signed the Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) on the afternoon of December 24, at the GDVC’s headquarters.
Quang Nam Customs focuses on preventing smuggling and combating budget loss

Quang Nam Customs focuses on preventing smuggling and combating budget loss

VCN - In order to create a healthy business environment, Quang Nam Customs Department focuses on anti-smuggling and anti-state budget loss.
Customs Modernization: From VNACCS to Digital Customs. Part 1: The "Revolution" of VNACCS

Customs Modernization: From VNACCS to Digital Customs. Part 1: The "Revolution" of VNACCS

VCN - The modernization of customs has been a continuous focus for the Customs sector, aimed at facilitating trade and enhancing the efficiency of state management. Central to this effort has been the VNACCS/VCIS System, which has provided numerous benefits to the business community and significantly boosted Vietnam's import-export turnover.
Quang Ngai Customs engages in dialogue with over 100 import-export enterprises

Quang Ngai Customs engages in dialogue with over 100 import-export enterprises

VCN - On December 18, 2024, the Quang Ngai Customs Department hosted a dialogue conference with more than 100 import-export enterprises operating in the area. This marks the second dialogue session organized by the department this year.

More News

Ba Ria - Vung Tau Customs strives to be ready to effectively implement the new organizational model

Ba Ria - Vung Tau Customs strives to be ready to effectively implement the new organizational model

VCN - In the afternoon of December 20, Ba Ria - Vung Tau Customs Department held a conference to summarize the work in 2024 and deploy tasks in 2025. Deputy Director General Luu Manh Tuong attended and gave a speech.
Mong Cai Border Gate Customs Branch tops CDCI

Mong Cai Border Gate Customs Branch tops CDCI

VCN - According to the announcement of the Customs Department Competitiveness Index (CDCI 2024) by Quang Ninh Customs Department, Mong Cai Customs Branch tops the index with a score of 92.65. This is the second consecutive year that Mong Cai Border Gate Customs Branch has topped the CDCI.
Ho Chi Minh City Customs: Satisfactorily resolving problems for Japanese businesses

Ho Chi Minh City Customs: Satisfactorily resolving problems for Japanese businesses

VCN - At the recent roundtable conference between Ho Chi Minh City Government and Japanese Business Association in Ho Chi Minh City, businesses were satisfied with the guidance and answers from the Customs agency.
Official implementation of the program encouraging enterprises to voluntarily comply with Customs Laws

Official implementation of the program encouraging enterprises to voluntarily comply with Customs Laws

VCN - After a two-year pilot phase, the Customs sector has officially launched the program encouraging enterprises to voluntarily comply with customs laws as of December 4, 2024, with the goal of enhancing compliance levels and ensuring consistent adherence among enterprises.
Proactive plan to meet customs management requirements at Long Thanh International Airport

Proactive plan to meet customs management requirements at Long Thanh International Airport

VCN - Director of Dong Nai Customs Department Le Van Thung requested the Ministry of Finance and the General Department of Customs to pay attention to directing so that after arranging and streamlining the apparatus, human resources can be immediately prepared to serve Customs at Long Thanh International Airport.
An Giang Customs issues many notes to help businesses improve compliance

An Giang Customs issues many notes to help businesses improve compliance

VCN - On December 17, An Giang Customs Department held a dialogue conference with over 50 import-export enterprises in the area. This is the second dialogue conference organized by An Giang Customs Department this year.
Achievements in revenue collection are a premise for breakthroughs in 2025

Achievements in revenue collection are a premise for breakthroughs in 2025

VCN – Motivated by great efforts and effective implementation of solutions, as of December 10 the total State revenue from imports and exports saw a year-on-year increase of 13.8% to VND397,861 billion, meeting 106.1% of the estimate. The revenue us estimated to reach VND420,000 billion, meeting 112 % of the estimate, up 13.9% over the same period in 2023. The achievements in 2024 are a premise for a breakthrough in revenue collection in 2025.
Director General Nguyen Van Tho: Customs sector strives to excellently complete 2025 tasks

Director General Nguyen Van Tho: Customs sector strives to excellently complete 2025 tasks

VCN - Concluding the conference, Director General of Vietnam Customs Nguyen Van Tho suggested many goals and solutions for the entire sector in 2025. Customs Magazine respectfully introduces the important contents in the Director General's concluding remarks.
Mong Cai Border Gate Customs Branch makes great effort in performing work

Mong Cai Border Gate Customs Branch makes great effort in performing work

VCN – When the night falls in a cold winter in Mong Cai city, many people have dinner with their families, officials of Mong Cai Border Gate Customs Branch (Quang Ninh Customs Department) still process customs clearance procedures at check points.
Read More

Your care

Latest Most read
Vietnam, Korea Customs sign AEO MRA

Vietnam, Korea Customs sign AEO MRA

VCN - According to Vietnam Customs, the signing of the AEO MRA is a trend and brings many benefits to enterprises and helps customs control more smoothly. The signing of the AEO MRA aims to bring long-term benefits to enterprises.
Quang Nam Customs focuses on preventing smuggling and combating budget loss

Quang Nam Customs focuses on preventing smuggling and combating budget loss

VCN - Along with the work of facilitating trade for businesses and passengers entering and exiting the country, the Sub-departmentes under the Quang Nam Customs Department also pay special attention to the work of inspecting and controlling against smuggl
Customs Modernization: From VNACCS to Digital Customs. Part 1: The "Revolution" of VNACCS

Customs Modernization: From VNACCS to Digital Customs. Part 1: The "Revolution" of VNACCS

The modernization of customs has been a continuous focus for the Customs sector, aimed at facilitating trade and enhancing the efficiency of state management.
Quang Ngai Customs engages in dialogue with over 100 import-export enterprises

Quang Ngai Customs engages in dialogue with over 100 import-export enterprises

Quang Ngai Customs Department hosted a dialogue conference with more than 100 import-export enterprises operating in the area.
Ba Ria - Vung Tau Customs strives to be ready to effectively implement the new organizational model

Ba Ria - Vung Tau Customs strives to be ready to effectively implement the new organizational model

VCN - According to the report of Ba Ria - Vung Tau Customs Department, in 2024, the world and regional situation continue to develop complicatedly, affecting the import and export activities of enterprises.
Mobile Version