HCM City responds to decrease in State revenue

	Trade in goods across HCM city port decreases US$ 11 billion
	HCM City seeks ways to attract more remittances
	HCM City seeks to promote export of mechanical products

Officers of the HCM City Customs Department inspect imported and exported goods. Photo: T.H

Both the trade in goods and the revenue decreases

According to the Import-Export Tax Division under HCM City Customs Department, the revenue from January 1 to June 6 reached VND54,857.8 billion, meeting 37.6% of the target, down 6.84% year-on-year or VND4,030.3 billion.

The Department was assigned a revenue target of VND145,800 billion, so it has to collect VND399.5 billion per day. However, as of June 6, the average revenue recorded 349.4 billion, meeting 87.5% of the target.

The revenue in the first half of the year plunged compared with the previous year due to the sharp decrease in the turnover of import-export goods and major imports across seaports in HCM city. In April alone, the total trade in goods declined compared with the previous year. The taxable turnover fell 10.74% to US$2.94 billion compared with the previous year or US$ 0.35 billion. The revenue in April dropped by 3.99% month-on-month.

The items that accounted for a high proportion of the budget revenue had a profound decrease. Specifically, CBU cars of all kinds: imported 5,501 units, taxable turnover of USD 135.9 million, down 24.1% in volume, down 19.5% in value; tax receivable amount is 2,622.7 billion dong, down 14.46% (absolute reduction 443.5 billion dong); machinery, equipment, tools and spare parts imported with a taxable turnover of 346.7 million USD, down 13.4% in value; tax receivable amount is 951.7 billion dong, down 12.63% (absolute decrease of 137.5 billion dong) compared to the previous month...

As of May 10, goods' total import and export turnover across HCM city seaports fell 22.29% to US$ 39.17 billion year-on-year. The import turnover dropped by 24.72% to US$ 21.14 billion, and the export turnover declined by 19.25% to US$ 18.03 billion compared with the previous year.

From now until the end of the year, it is forecasted that the domestic and global situation will face complicated developments; the price of input materials and inflation in many countries around the world surges, causing difficulties in revenue collection of the HCM City Customs Department.

Solutions to raise revenues

At the mid-term review conference on the implementation of the Resolution of the 5th Party Congress of HCM City Customs Department, term 2020-2025, Deputy Secretary of the HCM City Party Committee Nguyen Ho Hai assessed the Department's important role in the city's revenue.

However, Deputy Secretary Nguyen Ho Hai asked the HCM City Customs Department to implement solutions to assess the current status of enterprises and the "health" of the city's economy. Focus on combating smuggling, trade, and revenue loss.

HCM City Customs Department has provided many solutions to overcome difficulties, raise revenues, facilitate trade, remove problems, and instruct new business policies.

The Department has also regularly assessed the import and export turnover, and monthly and quarterly evaluated budget revenues, expected the revenue in the next month and quarter to build the estimate, and provided appropriate solutions to collect revenue.

The Department reviewed, classified, recovered and handled tax debts under four groups: bad debt group, frozen debt group, pending debt groups and recoverable debt to provide appropriate handling measures.

From the beginning of 2023 until now, the Department has handled over VND517 billion of tax debt.

The Department has strictly controlled tax refunds and implemented solutions to prevent fraud in VAT refunds.

The Department has directed border gate customs branches to review the declaration on goods name, HS code and tax rate to handle and collect tax arrears. Focusing on inspecting import and export items with risks in classification and applying tax rates, items whose codes are adjusted and subject to tax arrears at the request of audit and inspection teams collect tax arrears.