State budget revenue in first month of 2023 sees low result

	Increase in Excise Tax: Shifting to Compound Tax system appropriate direction
	Total state revenue in 2023 is estimated at VND1.620 quadrillion
	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.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

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.