State budget revenue in first month of 2023 sees low result

VCN - State budget revenue from import and export activities in January 2023 for the whole Customs sector only reached around VND 25,000 billion or 5.8% of the estimate, down 42.3% year-on-year.
Increase in Excise Tax: Shifting to Compound Tax system appropriate direction Increase in Excise Tax: Shifting to Compound Tax system appropriate direction
Total state revenue in 2023 is estimated at VND1.620 quadrillion Total state revenue in 2023 is estimated at VND1.620 quadrillion
State budget revenue is estimated at VND 1,464.3 trillion State budget revenue is estimated at VND 1,464.3 trillion
Many enterprises have had to cut employees and reduce production because of a sharp decline in orders. Photo: H.NuMany enterprises have had to cut employees and reduce production because of a sharp decline in orders. Photo: H.Nu
Many enterprises have had to cut employees and reduce production because of a sharp decline in orders. Photo: H.Nu

Reason for the low result

According to the General Department of Customs statistics, in January 2023, Vietnam recorded US$46.56 billion in trade, down 17.3% compared to December 2022. The exports are estimated at US$25.08 billion, down 13.6% and the imports are estimated at US$21.48 billion, down 21.3%. Thus, the country had a trade surplus of US$3.6 billion.

The sharp decrease in import and export value in January 2023 reduced State budget revenue from these activities to only VND24,852 billion, equaling 5.8% of the estimate and down 42.3% year-on-year.

A representative of the Import and Export Tax Department (General Department of Customs) said that Vietnam's total import and export turnover suddenly decreased by 25% compared to December 2022 mainly because that January falls on New Year holidays and Lunar New Year holidays. Hence, the number of working days is less than in December 2022 and the same period in 2022.

Another reason is that in the fourth quarter of 2022, enterprises' production and trading activities, import and export orders decreased. Therefore, entering 2023, this situation will still have a direct impact and may last until the end of the first quarter of 2023.

According to the representative of the Import-Export Tax Department, in the context that the economy may face inflation and economic recession in most countries, leading to a decline in global consumer demand, especially in key markets, it will adversely affect the import-export activities of Vietnam. This will also directly affect the State budget revenue of the Customs sector to achieve the target of state budget revenue in 2023.

Many solutions offered

In 2023, the pivotal year of the five-year plan 2021-2025, the world economic growth forecast tends to slow down. Although domestic enterprises' production and business situation has some positive factors, in general, there are still many difficulties.

The assigned target by the National Assembly and the Government to the Customs is VND 425,000 billion. This target is built based on GDP growth of 6-6.5%; crude oil price of 70 US$/barrel; an export turnover increase of 8-9%, and import turnover increase of 7-8%.

Accordingly, the Ministry of Finance requests the Customs sector to develop scenarios to perform the collection tasks for 2023 and 2023-2025 to fulfil the assigned targets.

To ensure sustainable revenue management, the Customs sector has strongly researched and applied IT, continued to improve procedures and regulations in implementing policies and laws on tax and customs.

Especially, the Customs sector is embarking on redesigning tax administration procedures towards simplification and consistency with customs procedures as the basis for electronic management from tax collection, tax payment, tax exemption, tax reduction, tax refund, non-tax collection, handling of overpaid tax, meeting the requirements of a smart Customs model with high automation.

In addition, the Customs authority has also strengthened the collection, analysis, assessment, development, use and management of a centralized database on goods codes, tax rates, customs values, and the management of tax debt, tax obligations and other revenues, automatically apply the policy of tax exemption, reduction, refund, tax collection and non-tax collection to the right subjects and according to the provisions of law.

The Customs sector aims to implement solutions to facilitate trade, improve the effectiveness of state management, combat revenue loss and strive to complete and exceed the annual revenue estimate; make efforts to solve difficulties and problems in the customs procedures, customs clearance and in production and business activities of enterprises...

In addition, the General Department of Customs requests central and local customs units to step up the implementation of solutions such as: promptly solving problems arising under their authority, tax policy, tax management, accounting regime, tax refund and exemption and creating facilitation for enterprises; enhancing coordination with banks to pilot the electronic tax payment 24/7 to help taxpayers make a tax payment at any time, anywhere by any means.

Experts call for review of EVFTA to build on positive results Experts call for review of EVFTA to build on positive results

Further, customs units in the whole sector continue to apply international standards and modern customs processes to create a maximum condition for the business community; strengthen customs control, post clearance audit, inspection, investigation and anti-smuggling.

By Nu Bui/ Huyen Trang

Related News

Ta Lung Customs

Ta Lung Customs' revenue flourishes

VCN - The budget collection results of Ta Lung Border Gate Customs Branch in the first months of 2024 have flourished, making an important contribution to the state budget revenue of Cao Bang Customs Department.
Import-export turnover across Lao Cai International Border Gate surges

Import-export turnover across Lao Cai International Border Gate surges

VCN – The import and export turnover at Lao Cai International Border Gate Customs Branch (Lao Cai Customs Department) surges compared with the previous year.
State-owned enterprises flourished

State-owned enterprises flourished

VCN - The production and business situation in the first quarter of 2024 of the state-owned enterprise sector continues to have many bright spots with many financial targets completed or exceeding the set plan. This is the premise for positive business results in the second quarter and the whole year 2024.
It is expected that there are higher orders and revenue in the second quarter from European businesses

It is expected that there are higher orders and revenue in the second quarter from European businesses

VCN - The Business Confidence Index (BCI) according to a survey by the European Business Association in Vietnam (EuroCham) reached 52.8 in the first quarter of 2024 - the highest level since 2022, showing increasing confidence in Vietnam's European business community.

Latest News

Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.

More News

Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Support clearance procedures for imported gold for bidding

Support clearance procedures for imported gold for bidding

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.
Majority of credit institutions forecast profit growth in 2024

Majority of credit institutions forecast profit growth in 2024

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).
Central bank plans to auction gold bars on April 22

Central bank plans to auction gold bars on April 22

The State Bank of Vietnam (SBV) will auction SJC-branded gold bars on April 22, a representative of the central bank said on April 19.
Old loans must endure higher interest rates temporarily: central bank

Old loans must endure higher interest rates temporarily: central bank

The average lending interest rate for new loans by commercial banks is reported at around 6.4% per year, a decrease of 0.7 percentage point per year compared to the end of last year. However, borrowers with loans issued before the latest rate adjustment still must pay higher rates, according to the State Bank of Vietnam (SBV).
Forum discusses support for women-owned firms ​to join supply chains

Forum discusses support for women-owned firms ​to join supply chains

A forum on supporting women-owned businesses to join supply chains through sustainable development tools took place in Hanoi on April 17.
Ensure savings and prevent losses in disbursement of public investment

Ensure savings and prevent losses in disbursement of public investment

VCN - The practice of thrift and combating waste in the management and use of public investment is one of key tasks in the program of thrift practice and waste combat in 2024 of the Ministry of Finance.
Implementing unprecedented fiscal policies to actively support people and businesses

Implementing unprecedented fiscal policies to actively support people and businesses

VCN - Implementing fiscal policies to support the economy, the Ministry of Finance has advised and offered many unprecedented solutions to reduce taxes, fees and charges, thereby supporting people and businesses to overcome difficulties, restore production and business. According to assessments, in 2024 fiscal policy will continue to be a positive highlight for the economy.
Read More

Your care

Latest Most read
Vietnam seeks to remove obstacles in upgrade of securities market

Vietnam seeks to remove obstacles in upgrade of securities market

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.
Price stability from supply increase and transparency in trading in gold market

Price stability from supply increase and transparency in trading in gold market

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electr
SBV takes more actions to stabilise foreign exchange rates

SBV takes more actions to stabilise foreign exchange rates

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

The revised Draft Law on Value Added Tax (VAT) also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund
Corporate bond maturity in 2024 remains high: MoF

Corporate bond maturity in 2024 remains high: MoF

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).
Mobile Version