Hai Phong Customs‘ revenue has increased in the last months of the year

VCN- Until the end of October 2018, Hai Phong Customs Department’s tax revenue was still lower than the same period in 2017. However, in the first days of November, the tax revenue has sharply increased, contributing to exceeding revenue compared to the same period in 2017.
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Goods that are imported and exported at Hai Phong Port, are carried out Customs procedures in many different customs departments, thereby, the tax revenue of Hai Phong Customs Department was significantly affected. In the photo: Goods are imported and exported via Tan Vu Port, Hai Phong City. Photo: T.B

“Reverse"

According to Hai Phong Customs Department, as of the end of 8th November 2018, the Department collected VND 44,836 billion, equivalent to 89.6% compared to the target assigned by the Ministry of Finance (VND 50,050 billion), reaching 88.5% compared to the desired target assigned by the General Department of Vietnam Customs (VND 50,640 billion), increasing by 0.17% compared to the same period in 2017 (VND 44,761 billion).

Not only closely achieving the target assigned by the Ministry of Finance and the General Department of Vietnam Customs, but also the Hai Phong Customs Department’s revenue to the current time is a spectacular reverse.

In the first half of 2018, the Hai Phong Customs Department’s revenue only reached VND 23,293 billion, a year-on-year decrease of 12.27%, equivalent to nearly VND 3,800 billion. Until the end of October, the revenue was still lower than the same period in 2017. Although the current revenue exceeds 0.17% compared to the same period in 2017, it has shown a breakthrough in revenue collection by Hai Phong Customs Department.

The leader of the Import and Export Duty Division (under Hai Phong Customs Department) said that in order to obtain the significant revenue increase, the Department was instructed by the leaders of Ministry of Finance, the General Department of Vietnam Customs, Hai Phong Party Committee and People's Committee.

Specially, the Department closely followed the task of revenue collection, actively, drastically and synchronously deployed solutions to perform the revenue collection and payment and handle outstanding tax debts.

The representative of Import and Export Duty Division said that in the general context of the country, the Department’s revenue was greatly affected by the tariff reduction from FTAs. Notably, the tax rate of over 90% of categories reduced to 0% under the ATIGA, of which, import tax rate for cars of less than 9 seats reduced from 30% to 0%. Moreover, although Hai Phong City was the area which had the largest volume of import and export goods in the north, these goods were also carried out in many other Customs departments under the form of independent and combined transportation. Therefore, the Hai Phong Customs Department’s revenue in the first 10 months of 2018 decreased compared to the same period of 2017.

Facing this situation, the leader of Hai Phong Customs Department has drastically instructed and performed to fulfill and exceed the revenue target. From the beginning of 2018, the Department has held the meeting on the performance of revenue collection and issued Official Letter 3162/HQHP-TXNK dated February 13, 2018, deploying solutions for revenue collection and anti-tax losses. Among solutions, the leader of Hai Phong has focused on accelerating administrative reform and modernization to improve the investment and business environment with solutions to provide the best facilitation for the import and export of enterprises in carrying out Customs procedures at its Customs Branches.

In parallel with the performance of revenue collection, the Hai Phong Customs Department has also focused on recovery of tax debt. From the beginning of the year to the first half of November, Hai Phong Customs Department collected and handled tax debt of VND 264 billion, of which, collecting and handling tax debt in 2018 was VND 209 billion and tax debt arising before 2018 was VND 55 billion.

Strive to exceed the target

The revenue results in the first days of November has significantly contributed to increase the revenue compared to the same period in 2017. This is an important premise for Hai Phong Customs Department to expect and strive to exceed the estimated target and desired target in 2018.

In order to fulfill the estimated target for the whole year, Hai Phong Customs Department must collect about VND 137 billion on average per day, and to complete the desired target it must collect VND 139 billion per day. However, with these revenue results, especially in the first days of November, the department’s exceeded revenue is positive. Because from the beginning of the year to November 20, Hai Phong Customs collected VND 145.5 billion on average per day, which was higher than the average target assigned by the Ministry of Finance and the General Department of Vietnam Customs. Separately in the first 20 days of November, the Department collected nearly VND 173 billion on average per day.

Although the revenue collection has positive signs, Hai Phong Customs Department is not thinking subjectively. In the meetings on deploying tasks in the last months of 2018, the Hai Phong Customs Department’s leader has requested units to strengthen the development of the Customs-Business partnership, control risks and risks of losses and deploy schemes on tax-losses such as reviewing classification and calculation of tax rates, tax debt management and etc. Recently, the Hai Phong Customs Department’s leader issued an official letter to request and urge subordinate units to effectively take measures to manage the revenue, including the management of Tax collection and debts.

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According to the Import and export Duty Division, from now until the end of 2018, Hai Phong Customs Department will continuously facilitate enterprises engaged in import and export, especially, strengthen the reform and modernization and coordinate with commercial banks in revenue collection and focus on promptly removing shortcomings and difficulties for enterprises. At the same time, accelerating the risk management in preventing smuggling and trade fraud; urging the inspection in tax debt management and taking measures to recover and handle tax debts in accordance with regulations.

Regarding to the Hai Phong Department’s revenue, as per the latest information from the General Department of Vietnam Customs, as of November 20 2018, the Department collected nearly VND 46,569 billion, equivalent to 93.05% of the estimated target and 91.96% of the desired target. Separately, in the first 20 days of November, the Hai Phong Customs Department collected VND 3,467 billion.

With the current revenue and collection progress, the Department’s revenue in 2018 may exceed the revenue in 2017 and set a new record. In 2017, Hai Phong Customs Department collected VND 53,019 billion, contributing over 17.84% of total Customs sector’s revenue to the State budget.

By Thai Binh/Ngoc Loan

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