Revenue collection in eight months achieves 85.6% of current appropriation

The recovery of the economy with positive impacts from fiscal policies to support the economy, businesses help increase state budget revenue. Photo: T.Bình

Drop in revenue collection of August

According to the statistics of Ministry of Finance, revenue collection in eight months is estimated to achieve VND106 trillion, decreasing by VND46 trillion compared to the previous month. In particular, domestic revenue collection reached VND78.4 trillion, reduced by about VND43.4 trillion; revenues from crude oil achieved VND 6.2 trillion, a decrease of VND2.6 trillion compared to last month.

At the same time, revenues from import-export activity net are 16.6 trillion VND, declining by VND5.2 trillion compared to last month.

According to the Ministry of Finance, the reason for the decrease in state revenue in August was that a number of revenues allowed to collect in the quarter, such as corporate income tax, personal income tax and VAT of business households arising in the second quarter which have been declared and paid in July, and the arising in August is low.

The decrease in oil revenue is due to the fact that, although the average paid oil price is still higher than the estimate, it was lower than the previous month by US$9.8/barrel.

Particularly for revenues from import-export activity net in August, taxable import turnover of some items with large revenues decreased sharply such as gasoline, oil, iron and steel, chemicals, plastics, and cotton of all kinds; combined with the amount of tax refund for some projects increasing following the implementation progress, reducing the state budget balancing revenues in this area.

At the same time, in August, tax and customs authorities continue to implement policies on extension, exemption and reduction of taxes, fees and charges that were already issued to support businesses and people. The total amount of taxes, fees and charges exempted, reduced and extended until the end of August was estimated at VND106.2 trillion. In particular, the extension amount is about VND52 trillion (the amount of the extension tax paid to the state budget is about VND10 trillion); the amount of exemption or reduction is about VND54.2 trillion.

Revenue collection in eight months increased

Total revenue collection in eight months was estimated at VND1,208.2 trillion, equaling 85.6% of current appropriation (the central budget is estimated at 84.8% of current appropriation; the local budget is estimated at 86.4% of current appropriation).

Domestic revenue is estimated at nearly VND954.6 trillion, equaling 81.1% of current appropriation, an increase of 15.9% over the same period in 2021. The domestic tax and fee revenues reached 80.2% of current appropriation, rising by 13.6% over the same period (excluding the impact factors of the policy of tax exemption, reduction and extension, the amount of domestic tax and fee collection increased by 6.9% over the same period).

According to the statistics, by the end of August, there were two revenues exceeding the estimate and three revenues reaching over 90% of current appropriation. Revenues from production and business activities (accounting for 52% of the estimate of total domestic revenue) were estimated at 76.8% of the current appropriation, growing by 11.2% over the same period.

Revenue from the SOE sector reached 74.9% of current appropriation, increasing by 9.8%; revenue from foreign-invested enterprises reached 71.9% of the estimate, rising by 3.4%; revenue from the non-state economic sector reached 82% of current appropriation, an increase of 18.4%.

According to the Ministry of Finance, there are two revenues that still have not met the estimated schedule yet; collection of environmental protection tax (reaching 57.6%) and capital recovery, dividend collection, profit, profit after tax, and the difference between revenue and expenditure of the State Bank (reaching 50.9%).

According to the Ministry of Finance, although the state revenue in August decreased, the total revenue for eight months still increased. In particular, the important reason is that the positive impacts of the fiscal policies to support the economy, businesses and people along with the recovery of the economy, tax and customs authorities at all levels have also made efforts to strengthen solutions to combat loss of state revenue.

By the end of August 15, 2022, tax authorities carried out 37.6 thousand cases of inspection and examination; checking 412.5 thousand tax declaration dossiers of enterprises; proposing to handle about VND35.5 trillion. Accordingly, about VND7.7 trillion is collected and paid to the state budget (VND4.9 trillion has been paid into the state budget), reducing the deductions and losses is VND27, 8 trillion; urge the collection and handling of tax arrears are estimated at VND 22.8 trillion at the end of eight months.

Oil revenue is estimated at nearly VND51.1 trillion, equaling 181.2% of current appropriation, climbing up by 98.8% over the same period in 2021. The average price of oil payment in eight months reached about US$107,3/barrel, an increase of US$47.3/barrel compared to the estimate, rising by 64.9% over the same period; and paid crude oil output reached 5.7 million tons, equaling 81.4% of the plan.

Revenues from import-export activity, net is estimated at VND197.6 trillion, equaling 99.3% of current appropriation, increasing by 21.5% over the same period in 2021.

The Ministry of Finance also said that import and export activities increased positively in eight months. As a result, the taxable export and import turnover of goods reached about US$97.9 billion as of August 15, 2022, rising by 14.4% over the same period, of which the turnover of goods contributed large revenue for the state budget increased sharply, such as; crude oil (increasing by 42.3%), gasoline (112%), phones and components (44.7%), iron and steel (15%), computers and electronic products (29.3%), and chemicals (18%).

At the same time, customs authority continued to strengthen collection management, implemented solutions to remove difficulties, facilitate enterprises to clear goods, and promote import and export activities.

As of August 15, 2022, customs authority has conducted 1,826 cases of inspections, checked and handled state revenues of nearly VND249.2 billion; closely coordinated with competent forces to fight against smuggling, trade fraud and counterfeit goods, seizing 9.93 thousand violations with the value of goods about VND4.17 trillion, VND232.5 billion was collected to State budget.