Customs sector: Revenue collection challenges are emerging

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 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...