Four-month State budget revenue drops as Gov’t offers tax relief

Illustrative image (Source: VNA)

In April, domestic collection to the State budget decreased by nearly 25% over March to VND72.5 trillion, equivalent to just 65% of the figure of the same period last year.

The General Department of Taxation asked local tax departments to hasten the effort of implementing the Government’s Decree No 41/2020/ND-CP dated April 8 about extension of deadlines for tax and land use fee payments.

Statistics showed that the General Department of Taxation has received more than 90,000 applications for postponement of tax and land use fee payments, worth totally VND26.2 trillion.

State budget revenue from crude oil in April was estimated at VND2.5 trillion, VND2.9 trillion lower than March as crude oil prices plunged.

In the four-month period, collection from crude oil totalled VND18.3 trillion, or 52.1% of the plan and up 0.9% over the same period last year. Crude oil prices averaged US$58 per barrel in January – April, US$2 lower than the price estimated in the State budget collection plan.

Revenue from imports and exports in April was estimated at VND13.9 trillion, VND5.8 trillion lower than the previous month. The total in the four-month period was VND63.9 trillion, a fall of 19% against the same period last year, due to the impact of the virus which caused trade to collapse.

According to the ministry, the State budget revenue this year might see a drop of VND150 trillion due to the impact of the virus, or even bigger if the country’s gross domestic product growth rate was below 5% as per the forecasts of some international organisations.

The drop in revenue would mainly be attributed to the fallout of sectors heavily affected by COVID-19, like services, tourism, trade and logistics.

The ministry estimated that budget deficit might widen by 1.5-1.6% of GDP to 5-5.1% GDP this year.

Dang Ngoc Minh, Deputy Director of the General Department of Taxation, said that focus would be placed on hastening reforms to create favourable conditions for taxpayers and improve the business climate which would promote production and business.

Inspection would be enhanced to prevent tax evasion, Minh said. In addition, the management on e-commerce would be improved to increase tax collection.