Khanh Hoa Customs: Strive to exceed target of VND 1,500 billion

	Customs faces difficulties fulfilling revenue target due to Covid-19 effect
	GDVC assigns target of collecting and handling overdue tax debts for provincial and municipal customs departments
	Customs sector determines to achieve revenue target

Nha Trang port customs officers handle procedures for businesses. Photo: T.H

According to Khanh Hoa Customs Department, in 2020, the department was assigned a budget target of VND 1,500 billion by the Ministry of Finance, of which, revenue in Khanh Hoa province is VND 1,300 billion and Ninh Thuan VND 200 billion; a desired target of 1,660 billion VND by the General Department of Customs, of which revenue from Khanh Hoa is VND 1,450 billion and Ninh Thuan VND 210 billion.

The impact of the Covid-19 pandemic and social distancing affected import and export activities of enterprises in the provinces, such as supply of seafood raw materials decreased and export markets narrowed. The amount of tax collected from goods originating from China and South Korea was low, accounting for a small proportion of total revenue of the unit (specifically in 2018, it accounted for 1.28%, in 2019 accounted for 1.01%; 2020 for 0.75% of the total revenue of the unit), so the situation of the Covid-19 disease will not affect the budget revenue of the unit much.

By the end of May, Khanh Hoa Customs Department collected VND 1,113.74 billion, 74.25% of the assigned target, 67.09% of the desired target of VND 1,660 billion, down by 46.55 % compared to the same period last year.Of which, revenue in Khanh Hoa was 891.82 billion VND, 68.60% of the target; Ninh Thuan VND 221.92 billion VND, 110.96% of the target.

Budget revenue of the KhanhHoa Customs Department from the beginning of the year to May 15had new revenue from raw sugar from sugarcane imported from Thailand with a volume of 25,000 tonnes worth US$9.03 million, equivalent to atax amount of VND 19.10 billion.

However, due to the Covid-19 pandemic, the volume of imported gasoline decreased by 4.36% and import price decreased resulting in a sharp decrease of 13.20% in import turnover compared to the same period in 2019. At the same time, total refunded tax (to May 15) for gasoline (due to the addition of C / O) was VND 253.31 billion, affecting the unit’s collection rate.

In addition, revenue from wind and solar power projects in Ninh Thuan also saw a yea-on-year decrease of 80.84% because the projects were completed and launched operation and the amount of imported equipment decreased.

Closely following the assigned targets and direction from the General Department of Customs in synchronous and drastic implementation of solutions to facilitate trade improves efficiency of State management and combat revenue loss, Khanh Hoa Customs Department has developed plans and carried out measures and solutions close to the actual situation. The department has required its branches and divisions to understand major revenues, assess implementation capability; regularly urge tax debt recovery, coordinate with other agencies to verify operational status of enterprises to apply coercive measures to recover overdue tax debts, avoid new debt arising; strengthen inspection and detect and handle violations of prices, codes and tax rates in a timely manner to prevent revenue loss, ensure estimates and the assigned targets.

In addition, to fulfilling the targets, Khanh Hoa Customs Department has paid special attention to tax debt collection. As of May 15, 2020, the unit collected VND 45.11 billion of overdue tax debts and coercive debts. Of which, VND 44.87 billion from overdue debts of one enterprise and more thanVND 240 million from coercive debt of two enterprises.

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According to the estimate of Khanh Hoa Customs Department, budget revenue until June 30, 2020 will reach VND 1,250 billion. Estimated revenue of the year will be VND 1,660 billion (gasoline: VND 800 billion; machinery and equipment VND 500 billion; other goods: VND 360 billion), exceeding the assigned target of more thanVND 160 billion.