VCN - Amid the turbulence of the pandemic, revenue collection still achieved positive results, growing by more than 14% over the same period in 2020 in the first eight months. However, the pandemic caused a great impact on production and business, leading to a decrease in revenue collection. It has posed difficulties and challenges for revenue collection from now until the end of the year.
|revenue collection still achieved positive results in the first eight months.|
According to Ministry of Finance, revenue collection is estimated at VND 1,004.2 trillion VND, 74.8% of current appropriation, up 14.3% over the same period in 2020. Domestic revenue is estimated at VND 820.4 trillion, 72.4% of current appropriation, up 12% over the same period in 2020. Revenue from crude oil is estimated at VND 25.7 trillion, equaling 111% of current appropriation, up 0 .9% from the same period. Revenues from import-export are estimated at VND 157.5 trillion, equaling 88.2% of current appropriation, up 31.2% from the same period in 2020, on the basis of the estimated total tax revenue of VND 255,6 trillion, 81.1% of current appropriation, up 27.2% over the same period; VAT refund is about VND 98.1 trillion, hitting 71.9% of current appropriation.
Budget revenue from import-export activities in the first eight months of the year was quite good due to the high increase in import-export turnover compared to the same period last year (taxable import-export turnover is estimated to increase by 34%). However, it is forecast that revenue from import and export will continue to decrease sharply in the following months due to the impact of the Covid-19 pandemic on business operations.
As for domestic revenue, according to Ministry of Finance, the above eight-month revenue results are positive due to the growth momentum of the economy from the last months of 2020. Some industries and sectors have benefited from fiscal and monetary policies to help remove difficulties for businesses and people and maintain a positive growth rate (such as banking, securities, real estate), create additional revenue for the state budget. However, the pandemic situation is still very complex so it can continue to affect budget revenue in the future.
In fact, State revenue is on a downward trend from May 2021 to present. For example, with VND 78.6 trillion of State budget revenue in August, domestic revenue is estimated at VND 63.2 trillion, down VND 14.2 trillion compared to July. The Ministry of Finance said due to the impact of the fourth outbreak of the pandemic, domestic revenue gradually decreased over the months. VND 115.6 trillion was collected in April (reaching 10.2% of current appropriation); VND 85 trillion was collected in May (7.5% of current appropriation); VND 80.5 trillion was collected in June (7.1% of the current appropriation); revenue was VND 114.4 trillion in July, excluding VND 37 trillion collected from corporate income tax declared and paid quarterly, only VND 77.4 trillion (6.8% of the current appropriation) was collected; revenue in August was VND 63.2 trillion (5.58% of the current appropriation), down VND 14.2 trillion compared to July, excluding corporate income tax paid quarterly.
Revenue from import and export in August was estimated at VND 24 trillion, down VND 11 trillion compared to July. The reason was the total import and export value was estimated at $53.7 billion in August, down by 5.8% compared to July. Import and export turnover with tax was estimated to decrease by 26% compared to the prior month (import turnover of iron and steel of all kinds decreased by 16.6%; machinery, equipment, tools and spare parts decreased by 19.8%; CBU cars of all kinds decreased by 35.6%), causing reduction of State revenue in this field.
According to the latest report from Quang Nam Tax Department, to the end of August, Quang Ngai Tax Department collected VND 8,186 billion, reaching 74.4% of current appropriation. If excluding revenue from oil, in eight months, the revenue collection of the unit is only achieved 69.6% of current appropriation. Compared to the target assigned by local government, some revenues are very low such as revenue from lottery activities reached 55.4%; land use fee reached 20.4%; land rental reached 59.3%; environmental protection tax reached 60.2%.
According to this unit, revenue is experiencing a sharp decline due to the pandemic. Due to the implementation of social distancing in Quang Nam, starting from the third quarter of 2021, revenue tends to decrease sharply. Many firms face several difficulties. For example, Binh Son Refining and Petrochemical Company, Saigon - Quang Ngai Beer Joint Stock Company and Quang Ngai Sugar Joint Stock Company.
On the other hand, Thai Nguyen Tax Department collected VND 8,808 billion, 93% of the ordinance estimate, equal to 70% of the estimate assigned by the local government in eight months. Although this is one of the 20 provinces that achieved the highest revenue in the country, it will still be a great challenge for this unit to complete the whole year's estimate.
According to a representative of Ha Nam Ninh Customs Department, in 2021, the Department collected VND 5,819 billion, equivalent to 66.05% of the estimate (8,810 billion VND) by the end of August. Also, the unit has settled tax refund procedures reaching VND 108 billion.
At this unit, the item that accounts for a large amount of revenue is automobile components of Hyundai Thanh Cong Automobile Factory. However, this company registered to participate in the preferential import tariff programme for auto spare parts and components under Decree 57/2020/CP-CP of the Government, so it had a great impact on the State revenue in the period 2018-2022. In 2021, it is forecasted that the tax refund (reduced State revenue) from this programme would be about VND 2,700 billion.
In addition, Decree 57/2020/ND-CP supplements Article 7b on the application of preferential import tariff rate of 0% for raw materials and components for manufacturing and processing of supporting industry products. It is expected that firms manufacturing and assembling supporting industrial products will register to participate in the preferential tariff program, which will also have a significant impact on revenue through the area.
Based on the assessment of the State revenue in the first eight months of the year, assessing the impact of the preferential import tariff programme on auto spare parts and components, the import situation of machinery and equipment of investment projects in the locality, Ha Nam Ninh Customs expectes to collect VND 8,890 billion to the State budget in 2021 (excluding the reduction in revenue due to import tax refund of auto parts and force majeure factors caused by the Covid-19 pandemic).
At the working briefing in August and the task orientation meeting for September, Minister of Finance Ho Duc Phoc said the Covid-19 pandemic was occurring more seriously. Key economic areas were suspended, production and business were disrupted. The 23 localities that have revenue that accounts for 70% of the total State budget revenue, were applying social distancing. The revenue collection is therefore facing great difficulties and challenges when the finance sector has to both ensure funding for the operation of the apparatus and ensure spending on anti-pandemic. This requires the entire sector to make efforts, with creativity and initiatives to complete the assigned tasks.
By Hiền-Linh-Nụ/Thanh Thuy