Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

VCN - Carrying out customs procedures for special imported goods, such as iron and steel, gasoline, Saigon Port Customs Sub-department, Region 3 is expected to generate large revenues, but the state budget revenue from these two items has decreased sharply.
Ho Chi Minh City Customs: Preventing many cases of importing goods that violate intellectual property rights Ho Chi Minh City Customs: Preventing many cases of importing goods that violate intellectual property rights
HCMC: Domestic revenue rises, revenue from import-export activities begins to increase HCMC: Domestic revenue rises, revenue from import-export activities begins to increase
Ho Chi Minh City: Imported gasoline, iron and steel greatly affect state budget revenue

Officials of Saigon Port Customs Sub-department, Region 3, supervise imported gasoline. Photo TH

Imported gasoline from ASEAN with 0% tax rate

According to the Saigon Port Customs Sub-department, Region 3, the State budget revenue from gasoline accounts for about 80% of the Sub-department's revenue. However, this year, imported gasoline only accounts for about 30% of the consumption output of key gasoline trading enterprises.

Accordingly, state-owned gasoline companies, such as: Petroleum Company Region 2 under Vietnam National Petroleum Group and Oil Corporation (PV OIL) under Vietnam National Oil and Gas Group are the two gasoline trading units with the main revenue from gasoline at the Sub-department.

Implementing the Government's policy, these enterprises purchase 70% of gasoline from domestic oil refineries, the imported amount only accounts for about 30%.

In addition to the reduction in output, the tax rate for this item also decreases gradually each year when implementing special preferential tax schedules under free trade agreements (FTAs), so the state budget revenue also decreases accordingly. For example, the special preferential tax rate Form D (ASEAN) for gasoline in 2023 is 5%, and will decrease to 0% in 2024.

In the first 10 months of 2024, enterprises importing gasoline products that complete procedures at the Sub-Department originating from ASEAN countries will be granted C/O form D and enjoy an import tax rate of 0%.

The import turnover of gasoline originating from ASEAN countries in 2024 increased by 53.35% compared to 2023, thus affecting the revenue in 2024.

According to Mr. Le Van Trien, Deputy Head of the Saigon Port Customs Sub-department, Region 3, imported gasoline is a special commodity. In addition to complying with the provisions of the Customs Law, Decree guiding the law, Circular 38/2015/TT-BTC and Circular 39/2018/TT-BTC, it is also necessary to comply with separate regulations such as Circular 69/2016/TT-BTC, Decision 3577/QD-TCHQ.

Accordingly, the location for customs procedures is specified at the customs Sub-department at the import border gate or at the customs Sub-department outside the border gate where the trader has a domestic warehouse system storing gasoline.

Therefore, it is not possible to import gasoline at ports outside of Ho Chi Minh City but to open a declaration at Saigon Port Customs Sub-department, Region 3 like other goods to increase revenue for the unit.

Imported goods are stored a lot at the port

In addition to gasoline and oil, imported steel products also have a great impact on the unit's state budget revenue. According to the reporter's records, imported steel products that have not completed customs procedures are currently stored at the port quite a lot.

According to Saigon Port Customs Sub-department, Region 3, the steel industry is heavily dependent on the real estate market and public investment. While these two sectors are currently underdeveloped, the output of imported steel consumption and domestic production have both decreased.

Large steel exporting enterprises must accept leaving goods at the port for more than 30 days, and only when there is a customer to buy the goods will they complete customs procedures to receive the goods.

According to the analysis of Saigon Port Customs Sub-department, Region 3, for imported steel products, through working with enterprises, only 2 importing enterprises have high import turnover, and the import plan is stable until the end of the year. With an estimated revenue of about VND 280 billion (including VND 190 billion expected to be collected from imported goods into Vung Tau ports).

In addition, the implementation of trade defense measures as prescribed in the Law on Foreign Trade Management, including anti-dumping measures, anti-subsidy measures and self-defense measures decided by the Minister of Industry and Trade to apply to some types of steel imported into Vietnam from some countries such as China, Indonesia, etc. has brought positive results, limiting the import volume to protect production and consumption. However, this is also the reason for the decrease in state budget revenue from imported steel products at the Sub-department.

For imported coal products, on average, there are about 2 to 3 coal ships imported per month, with tax revenue of about VND 1 billion/ship. As of October 31, 2024, the revenue from coal is VND 30 billion, expected to be about VND 34 billion by December 31, 2024.

Based on the above reality, according to the analysis of Saigon Port Customs Sub-department, Region 3, the estimated revenue in the last 2 months of the year is about 2,742 billion VND. Of which, revenue from petroleum products is 2,262 billion VND, steel products are 280 billion VND, and other products are 200 billion VND.

It is estimated that by December 31, 2024, the total state budget revenue will be 18,948 billion VND, reaching 88.544% of the assigned estimate of 21,400 billion VND.

To achieve the highest state budget revenue, in the last months of 2024, Saigon Port Customs Sub-department, Region 3 will continue to focus on reforming administrative procedures to create favorable conditions for businesses.

In particular, proactively reviewing the list of businesses with large tax payments to support, paying attention to resolving favorable procedures, thereby businesses operating effectively contribute to increasing revenue for the budget.

Continue to support import-export businesses with imported goods into other ports , not in Ho Chi Minh City but register declarations at the Sub-department, including arranging a registration desk, priority goods inspection and handling procedures outside of working hours to increase state budget revenue, etc.

By Le Thu/Phuong Linh

Related News

Lang Son Customs finds it difficult to collect and handle tax arrears

Lang Son Customs finds it difficult to collect and handle tax arrears

VCN - As of December 16, 2024, the total overdue debt for processed customs declarations at Lang Son Customs Department was more than VND180.7 billion, of which the unit conducted a charge-off debt of VND 93.9 billion. Although Lang Son Customs Department applied many measures, collection and handling of tax arrears is still a problem.
Ho Chi Minh City Customs: Exceeded the state budget revenue target by nearly 100 billion VND

Ho Chi Minh City Customs: Exceeded the state budget revenue target by nearly 100 billion VND

VCN - Carrying out the task of collecting the state budget in a very difficult context, but with the outstanding efforts of the leadership and civil servants of Ho Chi Minh City Customs Department, the unit has exceeded the state budget collection target by the end of the year.
Hai Phong Customs collects over VND87 billion from post-clearance audit

Hai Phong Customs collects over VND87 billion from post-clearance audit

VCN – The Post-clearance audit branch (under Hai Phong Customs Department) alone has conducted 236 audits and collected VND86.4 billion.
Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

Noi Bai International Border Gate Customs Sub-department: "Blocking" drugs via air

VCN - Along with the recovery and growth of passenger and cargo flights, illegal drug transportation by air is on the rise with increasingly sophisticated and complex tricks and constantly changing methods of operation to deceive Customs and other authorities.
Comment

Latest News

Customs reduces VAT under Resolution No. 174/2024/QH15

Customs reduces VAT under Resolution No. 174/2024/QH15

VCN- The General Department of Vietnam Customs (GDVC) has sent an urgent dispatch to provincial and municipal customs departments to implement VAT reduction under Resolution No. 174/2024/QH15.
HCMC Customs: Outstanding performance across all operations

HCMC Customs: Outstanding performance across all operations

VCN - On January 2, 2025, the Ho Chi Minh City (HCMC) Customs Department held its annual review conference to assess 2024 achievements and outline tasks for 2025. The event was attended by Vice Chairman of HCMC People's Committee Nguyen Van Dung and Deputy Director General of Vietnam Customs Dinh Ngoc Thang, who delivered keynote speeches.
Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

VCN - Facing mounting challenges in revenue collection, the Dong Nai Customs Department is stepping up efforts to secure its 2025 state budget targets through proactive measures and digital transformation.
Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

VCN - Director General of the General Department of Customs Nguyen Van Tho said that the customs sector will focus on arranging and streamlining the apparatus, ensuring that the new apparatus can be put into operation immediately, without interruptions.

More News

Cao Bang Customs Department collects over VND 940 Billion, achieving a 22% increase

Cao Bang Customs Department collects over VND 940 Billion, achieving a 22% increase

VCN - In 2024, the Cao Bang Customs Department achieved remarkable budget revenue growth, significantly surpassing its targets.
Ba Ria - Vung Tau Customs: A strategic partner in business success

Ba Ria - Vung Tau Customs: A strategic partner in business success

VCN - Businesses have highly appreciated the administrative reforms and support provided by the Ba Ria - Vung Tau (BR-VT) Customs Department, recognizing these efforts as a critical factor in fostering growth amid ongoing challenges.
Challenges facing customs revenue collection in 2025

Challenges facing customs revenue collection in 2025

VCN - Revenue from import-export activities is expected to face significant challenges in 2025, necessitating coordinated and decisive measures to ensure accurate and sufficient tax collection, preventing revenue losses, and achieving assigned targets.
Quang Ninh Customs: making efforts to help businesses improve compliance

Quang Ninh Customs: making efforts to help businesses improve compliance

VCN - Quang Ninh Customs Department has synchronously deploys support activities, guidance, answers questions, provided information, and warned of risks to help businesses proactively prevent and avoid violations, and voluntarily improve their compliance with customs laws.
Customs modernization: From VNACCS to Digital Customs: Part 3: Part 3: Comprehensive digital transformation in customs field

Customs modernization: From VNACCS to Digital Customs: Part 3: Part 3: Comprehensive digital transformation in customs field

VCN - The shortcomings and inadequacies related to the VNACCS/VCIS and satellite information technology (IT) systems have been identified early by the General Department of Customs. Therefore, on the one hand, the Customs sector has been actively seeking solutions to solve them, on the other hand, it has focused resources to carry out comprehensive digital transformation in the customs sector in response to the Government's policy.
Modernizing Customs: From VNACCS to Digital Customs Part 2: The urgent need for a new IT system

Modernizing Customs: From VNACCS to Digital Customs Part 2: The urgent need for a new IT system

VCN - With Vietnam's rapidly expanding economy and a significant rise in import-export volumes—now among the top 20 globally—the VNACCS/VCIS system has become outdated. It urgently requires an upgrade or the development of a new information technology (IT) infrastructure to streamline trade facilitation and enhance customs management efficiency in this evolving landscape.
Hai Phong Customs sets new record in revenue of VND70,000 billion

Hai Phong Customs sets new record in revenue of VND70,000 billion

VCN – Hai Phong Customs Department set a new record in budget collection in 2024 with more than VND70,000 billion
Businesses highly appreciate support of Quang Ngai Customs

Businesses highly appreciate support of Quang Ngai Customs

VCN – Administrative reform, trade facilitation and support for enterprises are key solutions of Quang Ngai Customs Department that have been highly appreciated by the business community, helping the department to soon complete its political tasks.
Dong Nai Customs proposes to pilot restructuring according to the new model

Dong Nai Customs proposes to pilot restructuring according to the new model

VCN – Apparatus restructuring according to the new model is one of the four key tasks of Dong Nai Customs Department in 2025.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Lang Son Customs finds it difficult to collect and handle tax arrears

Lang Son Customs finds it difficult to collect and handle tax arrears

VCN - As of December 16, 2024, the total overdue debt for processed customs declarations at Lang Son Customs Department was more than VND180.7 billion, of which the unit conducted a charge-off debt of VND 93.9 billion. Although Lang Son Customs Department
Customs reduces VAT under Resolution No. 174/2024/QH15

Customs reduces VAT under Resolution No. 174/2024/QH15

VCN- The General Department of Vietnam Customs (GDVC) has sent an urgent dispatch to provincial and municipal customs departments to implement VAT reduction under Resolution No. 174/2024/QH15.
HCMC Customs: Outstanding performance across all operations

HCMC Customs: Outstanding performance across all operations

Ho Chi Minh City Customs Department held its annual review conference to assess 2024 achievements and outline tasks for 2025 on January 2, 2025
Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

Tackling revenue challenges: Dong Nai Customs Department’s strategic plan for 2025

Facing mounting challenges in revenue collection, the Dong Nai Customs Department is stepping up efforts to secure its 2025 state budget targets through proactive measures and digital transformation.
Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

Director General Nguyen Van Tho: streamlining apparatus to meet the requirements of customs modernization

VCN - Director General of the General Department of Customs Nguyen Van Tho said that the customs sector will focus on arranging and streamlining the apparatus, ensuring that the new apparatus can be put into operation immediately, without interruptions.
Mobile Version