VCN- The impact of Covid-19 has led to the restriction in trade and decrease in goods consumption, difficult customs clearance, labour sources and operation of businesses and the sharp decrease in goods. These have indirectly affected Customs' revenue, reducing by VND 27,484 billion from the same period last year.
|Customs’ revenue plunges in first quarter|
|Long An Customs revenue collection decreases 22.5%|
|Customs’ revenue decreases 7.36% compared to 2019|
|Officers of Hai Phong Customs inspect import and export goods. Photo: T.B|
In the first six months revenue reaches 44.8% of the estimate
Total taxable import-export turnover of the country in the first six months of the year reached US$240.11 billion, decreasing by 1.34% compared to the same period in 2019. Of which, export turnover was $122.78 billion, a slightly increase by 0.2% and import turnover was $117.32 billion, dropping 2.9% compared to 2019.
Total taxable import-export turnover in the first six months of the year was $50.5 billion, down 11% compared to 2019. Of which, taxable import turnover reached $47.7 billion, decreasing by 10.4%; taxable export turnover reached $2.75% billion, dropping by 13.6% compared to 2019.
According to a representative of the Import-Export Duty Department under the General Department of Vietnam Customs, at the time of estimating, crude oil price is forecast to reach $60/barrel. However, the restriction of travelling and trade among countries, especially the aviation industry, has led to a sharp decrease in crude oil prices of less than $35/barrel and a slump in the State revenue.
In addition, in 2020, import tax rate under the EVFTA signed by Vietnam has been deeply reduced, especially for commodities with large turnover, high tax rate and revenue accounting for a large proportion.
In addition, the EVFTA signed by Vietnam and the European Union commits to eliminating nearly 100% of tariff lines and import duty for goods of the two sides after a short roadmap, leading to a sharp decrease in revenue from import and export in 2020. Accordingly, revenue reduced from the FTAs in 2020 is estimated at VND 13,900 billion.
Although the economy has restored and import-export actives have prospered in June compared to the first months of the year, the impact of Covid-19 has led to the restriction in trade and decrease in goods consumption, difficult customs clearance, labour sources and operation of businesses and a sharp decrease in goods. These have indirectly affected Customs revenue, reducing VND 27,484 billion over the same period last year.
“Statistics show that in the first six months of the year, the whole Customs sector collected and paid VND 149,015 billion to the State budget, equivalent to 44.08% of the estimate and 41.98% of the target, down 15.53% compared to the same period in 2019,” a representative of the Import and Export Duty Department said.
Revenues of provincial and municipal of local customs departments were affected by the Covid-19 pandemic, leading to a year-on-year decline in revenue. Revenue of the Ho Chi Minh City Customs Department decreased by 17.9%; Hai Phong Customs Department dropped by 25.4%; Hanoi Customs Department fell by 4.92%; Ba Ria - Vung Tau Customs Department plunged by 20.84% and Dong Nai Customs Department slumped by 25.48%.
A representative of the Import and Export Duty Department said that in the first months of 2020, average monthly revenue gradually decreased, the average revenue was VND 1,446 billion per day. But in June, it was only VND 1,122 billion.
Also the representative said that amid the world economic situation in the last six months of 2020 is forecast to be very difficult. In addition, the strong reduction in import tax rate under FTAs has greatly affected State revenue. The pandemic still takes place in many countries, the restriction in trade and decrease in goods consumption. Thereby, Customs revenue in 2020 is estimated at VND 300,000 billion.
Focus on implementing solutions in revenue collection
In the second half of the year, striving to reach highest revenue, the Customs sector continues to implement Directive No. 01/CT-BTC of the Ministry of Finance, Directive No. 1040 / CT-TCHQ of the General Department of Vietnam Customs on the implementation on drastic and synchronous solutions to facilitate trade and enhance the effectiveness of State management and anti-revenue losses in implementing State budget collection in 2020 and Decision 924/ QD-TCHQ on March 27, 2020 assigning targets of tax debt collection to provincial and municipal customs departments, urging, monthly and quarterly monitoring tax debt collection and handling.
Customs will implement strict management measures to prevent new tax debts which business owners vacated from business addresses or returned to their countries (foreign business owners) and irrecoverable tax debts for goods processed and imported to make processed goods and imported goods to produce export goods.
Strengthen post-clearance audit, specialised inspection, fight against smuggling and trade fraud, focusing on checking the quantity, value, codes, and origin of goods. Focusing on inspecting targeted goods and preventing revenue loss.
Besides, it requests provincial and municipal customs departments to monitor the revenue source, especially import and export activities with countries hit hard by the Covid-19 pandemic such as China, the US and the EU, South Korea, analyse and evaluate operation of enterprises in the locality, export of agricultural products, fruits across border gates, import of raw materials, supplies, machinery and equipment; assign officials to instruct and support businesses for quick customs clearance in accordance with the law.
|Import taxable turnover of some major commodities sharply dropped such as petroleum products reached $1,325 million, felling by 30.7%, tax payable of VND 6,416 billion, decreasing by VND 3,554 billion; CBU cars reached $889 million, dropping by 45.7%, tax payable of VND 12,063 billion, decreasing by VND 9,524 billion; automobile spare parts and components and reached $1,430 million, declining by 21.8%, tax payable of VND 7,905 billion, decreasing by VND 2,181 billion; machinery, equipment and spare parts reached $8,318 million, decreasing by 10.8%, tax payable of VND 21,397 billion, decreasing by VND 2,958 billion compared to 2019.|
By Dao Le/Ngoc Loan