Hanoi Customs faces difficulties in state budget collection

VCN - According to Hanoi Customs Department, although the import-export turnover of goods in the first six months of the year at the unit increased, many imported products with large revenue contribution and high tax rates decreased, having a great impact on the unit's budget revenue results.
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Customs officers of Hanoi Customs Department at work. Photo: N.Linh
Customs officers of Hanoi Customs Department at work. Photo: N.Linh

Imports of many key products decreased

As of June 30, 2024, the entire Department collected VND14,943 billion, equal to 44.5% of the estimate and equal to 105.34% of the same period in 2023.

Assessing the import-export situation and state budget revenue in the first six months of the year, Deputy Director of Hanoi Customs Department Hoang Quoc Quang said that in early 2024, the import-export situation nationwide showed signs of improvement more than the same period in 2023. However, many items with large revenue contribution to the department tended to reduce, such as: chemicals and chemical products, plastic raw materials, phones of all types and components, motorbikes and motorbike components, other means of transport... Some products still had stable growth such as household electronics and pharmaceuticals, particularly for imported CBU cars, although import turnover decreased by 53% over the same period last year, taxes still increased by 16% because businesses imported luxury cars from markets outside ASEAN.

Analyzing the factors affecting the revenue, a representative of the Import-Export Tax Division (Hanoi Customs Department) said that the sharpest decrease was in the group of means of transport and spare parts, down 42%; CBU cars with less than 9 seats decreased by 33%; automobile components and spare parts reduced by 31%, motorbike components and spare parts reduced by 30%.

The Import-Export Tax Department (General Department of Customs) said that the Government has issued 17 preferential import-export tariff schedules to implement FTAs in the 2022-2027 period. Therefore, many imported products with high tax rates reduced, so budget revenue from import taxes was affected. Furthermore, the National Assembly issued Resolution No. 110/2023/QH15 to reduce value added tax by 2% for some items applicable from January 1, 2024 to June 30, 2024 and recently, the National Assembly decided to continue extending the 2% reduction in VAT rate for some groups of goods and services until the end of 2024. This is also the reason leading to a decrease in budget revenue from VAT.

Facing the impacts of economic factors and policies, from the beginning of 2024, Hanoi Customs Department has directed units to drastically implement solutions to realize Directive No. 371/CT- TCHQ dated January 24, 2024 of the Director General of the General Department of Customs on the drastic and synchronous implementation of solutions to facilitate trade and improve the effectiveness of state management in 2024; assigned the state budget revenue estimate for 2024, assigned the minimum target for recovery and handling of overdue debt in 2024. In addition, the leaders of the Department and its branches have proactively grasped and promptly resolved problems through business conferences, worked with corporations, businesses, and large business associations in the area; reported to competent authorities any problems beyond their authority regarding customs policies and procedures in order to create maximum convenience for the activities of businesses carrying out customs procedures at the department.

Aiming to reach the target of VND33,570 billion

Deploying tasks in the last six months of the year, Hanoi Customs Department has developed a plan to specify solutions to facilitate businesses: continuing to reform and simplify administrative procedures in the customs field towards modernity, openness and transparency; removing difficulties and supporting businesses in import and export activities; regularly organizing Customs-Business dialogue conferences at department and branch levels; coordinating with business associations, authorities, relevant organizations, and export businesses to exchange, provide information, and support them to improve compliance with Customs laws; assigning and arranging civil servants to directly solve enterprises' problems in the customs clearance.

In the last six months of the year, Hanoi Customs Department determined to continue closely implementing the assessment of state budget revenue, analyzing the causes of increase and decrease to promptly take measures and directions to achieve the 2024 revenue estimate target, regularly reviewing and drastically implementing measures to urge collection and debt handling in accordance with instructions in the tax debt and other revenue management process for imported and exported goods.

Continuing to review and build a value risk list appropriate to the price fluctuations of exported and imported goods, focusing on building inspection prices for imported and exported goods with high tax rates, as a basis for conducting inspection, consultation, and valuation at the customs clearance stage or conducting post-customs clearance audits to handle and prevent cases of unreasonable declaration of customs value for tax fraud and evasion. Reviewing the system and checking the reports of the customs branches on valuation work to promptly detect cases of questionable declared prices, check and consult on prices, and implement measures to prevent revenue loss through tax value fraud. At the same time, reviewing and checking the application of HS codes among units in the department to ensure consistency; promptly correcting the application of multiple HS codes for the same product or the incorrect application of export tax and import tax rates.

By Ngoc Linh/ Huyen Trang

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