First half of 2018: Domestic revenue of 36 provinces reached over 53% of the estimate

	General Department of Taxation: State Budget collection continuously gets low result in 7 months
	Domestic revenue has not reached expectations
	Domestic revenues are low

Tax operation at Dong Da Tax Branch (Ha Noi). Photo: H.V

Total revenue for the first half of the year was estimated at VND 651.7 trillion, equivalent to 49.4% of the estimate, up 14.3% over the same period last year. In particular, domestic revenue was estimated at VND 523.4 trillion, equivalent to 47.6% of the estimate, up 15.5%.

Excluding specialized revenues (revenue from land use, lottery, dividends and after tax profits of State-owned enterprises; recovery of State capital invested in enterprises), the remaining domestic revenue was estimated at VND 402.5 trillion, equivalent to 46.4% of the estimate, up 13% (in the same period in 2017 it reached 43.1% of the estimate, up 9.9%).

According to the Ministry of Finance, in the first half of 2018, the progress of revenue collection was unequal. Some revenues were quite high compared to the estimate; such as revenue from granting of mining rights reached 91.2% of the estimate, revenue from house and land reached 74.3% of the estimate, lottery revenue reached 65.9% of the estimate, and revenue from personal income tax reached 53% of the estimate, up 19.7%.

Although some revenues increased compared to the same period in 2017, the progress did not reach the estimate (less than 48%). Revenues from FDI sector only reached 39% of the estimate; revenues from the State-owned enterprise sectors reached 43.4% of the estimate; revenue from non-state sector reached 47.9% of the estimate, due to the low growth of the production and business of sectors such as tobacco production, coal mining, telecommunication, automobile production, with some even reducing revenues in these sectors. In addition, some revenues were lower than the average progress, such as revenue from Environmental Protection Tax reached 45.3% of the estimate; revenue from charges and fees reached 47.9% of the estimate.

It is estimated that in the first half of 2018, the domestic revenue from 45 of 63 provinces reached the estimate by over 50%. In which, revenues of 36 provinces reached over 53%, and revenues from 53/63 provinces were higher than the same period in 2017; revenues of 10 provinces was lower than the same period. Excluding revenue from land, lottery, dividends and after tax profits, 31 provinces reached the estimate. Notably, revenues of 32 provinces was lower than the estimate, in which 13 provinces reached less than 45% of the estimate.

Domestic revenues are relatively high thanks to land revenues and fees VCN- According to the General Department of Taxation, the progress of budget estimation in the first 4 ...

In addition to domestic revenue, the revenues from crude oil, imports and exports were quite high. Revenue from crude oil was estimated at VND 29.6 trillion, equaling 82.4% of the estimate, up 25.3% over the same period. Revenue from export and import activities was estimated at VND 146 trillion. After refunding the Value Added Tax in accordance with regulations (VND 47.8 trillion), the revenue from import-export was VND 98.2 trillion, equal to 54.9% of the estimate, up 6.9%.

The implementation of commitments on the ASEAN Free Trade Area (ATIGA) with the reduction of 0% import tax rate for over 90% of commodity lines, of which, revenue of some commodities have contributed a large amount to the State budget, including CBU cars and parts, and iron and steel, have affected the revenue of the budget. The total import and export turnover in the first six months was estimated at over US$ 225 billion, up 13% over the same period last year, but the revenue increased only 2%.