State budget revenue reached 85.1% of estimate

Amending 3 important policies in the Law on State Budget

Special consumption tax collection from the domestic automobile manufacturing and assembly industry in the first 9 months of the year decreased by 23% compared to the same period last year. Photo: N.Ha

Budget revenue progresses well

According to the report on the implementation of the state budget in September and the first 9 months of the year by the Ministry of Finance, the total state budget revenue in September is estimated at VND 94.3 trillion, equal to 5.5% of the estimate, equal to 55.7% compared to the average revenue in the first 8 months of 2024.

Of which, domestic revenue is estimated at VND 74 trillion, equal to 5.1% of the estimate, equal to 52.4% of the average revenue in the first 8 months (VND 141.1 trillion/month); revenue from crude oil is estimated at VND 4.8 trillion, equal to 10.4% of the estimate, equal to 96.9% of the average revenue in the first 8 months (VND 4.96 trillion/month); revenue from import-export activities is estimated at about VND 15.4 trillion, equal to 8% of the estimate, equal to 87.2% of the average revenue in the first 8 months.

The total state budget revenue in the first 9 months is estimated at VND 1,448.2 trillion, equivalent to 85.1% of the estimate, up 17.9% over the same period in 2023.

Of which, the central budget revenue is estimated at about 89.9% of the estimate; local budget revenue is estimated at about 80.4% of the estimate.

Domestic revenue is estimated at VND 1,203 trillion, equal to 83.3% of the estimate, up 18.9% over the same period in 2023. In domestic revenue, although the revenue from housing and land in the first 9 months was low (estimated at 68.5% of the estimate), it still increased by 83.7% over the same period thanks to some localities that have well organized land auctions and land allocation for projects since the end of 2023 and have generated payments in the first month of 2024.

By locality, it is estimated that 35/63 localities have implemented domestic revenue in the first 9 months reaching over 78% of the estimate; 56/63 localities have revenue growth over the same period.

Revenue from crude oil is estimated at about VND 44.4 trillion, equal to 96.6% of the estimate, down 2.9% over the same period in 2023. Meanwhile, revenue from import-export activities is estimated at VND 200.2 trillion, equal to 98.1% of the estimate, up 17.6% over the same period in 2023, on the basis of: total tax revenue is estimated at VND 305.2 trillion, equal to 81.4% of the estimate, up 13.1% over the same period; VAT refunds according to the regime are about VND 105 trillion, equal to 61.4% of the estimate.

Revenue reduction from some key sectors

According to the Ministry of Finance, the above results are thanks to the fact that in recent months, the entire Tax and Customs sector has continued to focus on implementing solutions to strengthen revenue management, prevent revenue loss, and increase revenue from revenue sources with room for growth and potential (such as: business on digital platforms, e-commerce, real estate transfer, chain business, collection from foreign suppliers, etc.).

In particular, the Tax authority has resolutely handled and recovered tax arrears, strictly controlled the situation of tax declaration, payment, and refund, increased propaganda, and answered questions for taxpayers; promoted digital transformation, modernized tax collection, and expanded the implementation of electronic invoices.

According to the Ministry of Finance, as of September 15, 2024, the Tax authority has conducted 40.96 thousand inspections and examinations; examined 365.3 thousand tax declarations of enterprises. Thereby, the proposal to handle finances is about 41.8 trillion VND, of which the proposal to collect and pay the state budget is about 10.5 trillion VND (already paid to the budget is about 7.4 trillion VND), reduce deductions and reduce losses by nearly 31.4 trillion VND; urge the collection and handling of tax arrears estimated at about 56.1 trillion VND by the end of September.

The Customs Department has also conducted 1,565 inspections, checks, and handled the collection of 392.5 billion VND to the state budget.

Regarding the results of state budget collection in the first 9 months of the year increasing compared to the same period, at the meeting with voters of Binh Dinh province on September 30, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said that the state budget collection achieved an impressive growth rate thanks to the Government, the Ministry of Finance, the General Department of Taxation, and the General Department of Customs having strongly innovated the state budget collection method.

In particular, revenue agencies have focused on building large data sources, collecting revenue from real estate transfers; issuing electronic invoices for each sale of gasoline and oil; connecting invoices generated from cash registers with tax authorities, etc. Thanks to these drastic solutions, the state budget revenue exceeded estimates and exceeded last year's.

However, according to the Ministry of Finance's assessment, revenue from the production and business sector has decreased due to a decrease in revenue from production and business activities of a number of key industries that contribute greatly to the state budget.

For example, special consumption tax revenue from the domestic automobile manufacturing and assembly industry decreased by 23% compared to the same period, estimated revenue from the electricity industry decreased by 14% and estimated revenue from the mining industry decreased by 8% compared to the same period.

Along with that, the continued implementation of tax and fee exemption and reduction policies; tax and land rent extension policies under Decree No. 64/2024/ND-CP has had an impact on reducing state budget revenue in September. The total amount of exemption, reduction and extension is estimated at the end of September at about VND 116.4 trillion, of which about VND 68.7 trillion is exempted and reduced; about VND 47.7 trillion is extended.