Three reasons for reducing state budget revenue of Ho Chi Minh City Customs

VCN - Import-export turnover in Ho Chi Minh City tends to increase, but state budget revenue from import-export activities decreases. Ho Chi Minh City Customs Department pointed out 3 reasons why the revenue decreased.
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The decrease in imported cars is the main reason for the decrease in state budget revenue of Ho Chi Minh City Customs. Photo: T.H
The decrease in imported cars is the main reason for the decrease in state budget revenue of Ho Chi Minh City Customs. Photo: T.H

According to the Ho Chi Minh City Customs Department, the unit's state budget revenue in the first 6 months of 2024 reached 58,747.1 billion VND, equal to 44.91% of the assigned estimate (130,800 billion VND), down 7.67% (absolute decrease of 4,882.5 billion VND) compared to the same period in 2023.

According to analysis of Ho Chi Minh City Customs Department, in the context of the situation of import-export turnover in Ho Chi Minh City tending to increase; Accordingly, the total import-export turnover reached 55.80 billion USD, an increase of about 8% over the same period in 2023. But the state budget revenue of Ho Chi Minh City Customs Department decreased due to many objective and subjective reasons.

Firstly, although the import and export turnover of key product groups in the first 6 months of 2024 increased compared to the same period in 2023; complete cars of all kinds accounting for about 13% of the state budget revenue structure sharply decrease in quantity (19.3%) and value (35.4%) that resulted in the amount of receivable tax to the state budget decreasing by nearly 45% (equivalent to nearly 6,000 billion VND) compared to the same period in 2023.

The reason for the decrease in imported cars is mainly due to market supply and demand and weak purchasing power, so the number of cars in stock at the port is still very large and the amount of imports is expected to continue to decrease in the near future.

Second, many imported products with high tax rates have their taxes reduced, and will be reduced further in the following years according to the tariff reduction roadmap committed in the FTA Agreements. In addition, some items affected by the VAT reduction policy (from 10% to 8%) according to Resolution 101/2023/QH15 dated June 24, 2023 also affect the budget collection of Ho Chi Minh City Customs Department.

Third, the logistics system in the city today also faces many unfavorable conditions. For example, the traffic system is congested and construction activities of infrastructure projects around Cai Lai port and ICD Phuoc Long Hiep Phuoc increase transportation costs of businesses; Meanwhile, neighboring provinces, such as Ba Ria-Vung Tau, Long An, and Dong Nai, promote the development of ports and favorable policies to reduce the role as logistics center of Ho Chi Minh city, potentially shifting goods in the city to neighboring provinces and cities.

Director of Ho Chi Minh City Customs Nguyen Hoang Tuan discussed with the General Director of Intel Vietnam Company at a dialogue conference held at the end of June 2024. Photo: T.H
Director of Ho Chi Minh City Customs Nguyen Hoang Tuan discussed with the General Director of Intel Vietnam Company at a dialogue conference held at the end of June 2024. Photo: T.H

From the above reality, to nurture state budget revenue and promote trade flow, leaders of Ho Chi Minh City Customs Department have thoroughly promoted administrative reform, modernization, and trade facilitation for the business community; with special emphasis on continuing to develop the Customs-business partnership through organizing dialogue conferences, training, and disseminating legal policies to people and businesses.

In addition, Ho Chi Minh City Customs Department will maintain and develop the program "The business community and Ho Chi Minh City Customs Department are trusted partners, accompanying to development" as an important annual forum.

Through these forums, not only to disseminate new legal documents and regulations, Ho Chi Minh City Customs Department also aims to enhance understanding, cooperation and companionship between Customs authorities and the business community, listen to opinions, initiatives and contributions from businesses, help improve legal regulations and improve service attitudes, aiming at the goal of administrative reform, customs modernization, and better service for the business community.

By Le Thu/ Phuong Linh

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