September 22, 2018 02:09

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Customs revenues in the first half of 2018: Optimistic but still worried

08:41 | 08/07/2018

VCN- Under the deep impact of the import tax reduction period, the State budget revenues increased by 2.04% over the same period last year due to oil imports. However, it is forecasted that at the end of the year, revenues from imported petrol will decrease, which will put a considerable pressure on the tax collection.

customs revenues in the first half of 2018 optimistic but still worried Customs revenues reached VND 68,027 billion in the first quarter of 2018
customs revenues in the first half of 2018 optimistic but still worried Customs must collect 24 trillion VND in each remaining month
customs revenues in the first half of 2018 optimistic but still worried Customs revenues tends to decrease
customs revenues in the first half of 2018 optimistic but still worried
Customs officers of Cai Lan Customs Branch under the Quang Ninh Customs Department supervise imported goods at port. Photo: T.Trang.

In 2018, import duty rates have entered a phase of deep cuts, especially those with high tax rates and big import turnovers. Objectively, export turnover in the first six months of the year is estimated at $US 225.29 billion, an increase of 13% over the same period in 2017 (of which export turnover is estimated at $US 113.93 billion, an increase of 16% and import turnover is estimated at $US 113.36 billion, an increase of 10.2%), and the rate of State budget revenues increased by 2.04% over the same period last year. The impact of deep cuts included goods with high tax rates, large import turnovers such as automobiles, complete parts and components of automobiles, and iron and steel.

According to the analysis of the Department of Import-Export Duty under the General Department of Vietnam Customs, the tax revenues of Customs in the first 6 months of 2018 increased mainly due to import petrol. Imported petroleum increased both in volume and value (an increase of 10.4% in volume and 38.8% in value over the same period last year). In June 2018, gasoline imports climbed by 3.5% from the previous month to $US 900 million, an increase of 3% from the previous month. The export volume in the first 6 months of 2018 was estimated at more than $US 4.61 billion, an increase of 10.4% in volume and 38.8% in value over the same period last year.

Another product which is a major source of tax revenues of Customs, mainly impacting on the State budget revenue in the first months of the year is the automobile complete units. As of 15 June 2018, total imported automobiles reached 10,084 units, valued at $US 274.4 million (of which automobiles less than 9 seats were 7,551 units, valued at $US 171 million), a decrease of 78.6% in volume and 70.9% in value over the same period in 2017.

However, with everyone’s efforts, the collection of State budget of the whole Customs sector in the first 6 months of2018 reached VND 146,000 billion, equivalent to 51.6% of the estimate, an increase of 2.04% over the same period in 2017 (equivalent to an increase of VND 2,925 billion).

To achieve this result, from the beginning of the year, the General Department of Vietnam Customs issued Directive No. 555 / CT-TCHQ dated 26 January 2018 on implementing the task of collecting state budget in 2018. Along with that, the Customs should focus on a wide range of solutions such as tax inspections, post-clearance inspections, anti-collection, anti-smuggling and trade frauds. Apply measures to manage the collection and control of State budget revenues, such as: to prevent price losses, to increase the control of import prices prescribed in the price database, to intensify the inspection of exported goods; classification of goods; inspections of origin of goods; to intensify the post-clearance audits, to ensure the right and proper collection and remittance into the State budget.

However, all these results are only the first half of 2018. According to the calculations of the Department of Import-Export Duty, to complete the targets of striving to collect state budget in 2018 of VND 283,000 billion, equivalent to VND 24,500 billion per month, an increase of VND 170 billion compared to the first half of the year (VND 24,330 billion). This is a very difficult target, because the Nghi Son Petrochemical Plant will produce commercial products in domestic market in July 2018. Thus, the State budget revenue in the last 6 months of 2018 from imported petroleum will decrease by VND 17,400 billion.

On the other hand, the State budget revenues in the last 6 months of 2018 will be affected by the Decree No. 125/2017 / ND-CP on automobile parts and accessories. Accordingly, since 1 January 2018, a number of imported automobile parts have enjoyed tax rate of 0%, so the Customs will have to refund import duty for enterprises to meet the requirements in line with provisions of this Decree. It is expected to be completed in the end of 2018 with a refund of about VND 4,200 billion.

With determination to fulfill the targets of State budget revenue in 2018, the Director General of Vietnam Customs Nguyen Van Can confirmed that right from the beginning of 2018, units under the Vietnam Customs shall seriously manage the State budget revenues and apply measures to prevent losses and increase State budget revenues.

At the provincial and municipal Customs departments, the Customs shall implement the evaluation of value inspection, consultancy so that there is a plan to build the model and arrange the forces to work under Decree No. 59/2018 / ND-CP amending and supplementing Decree No. 08/2015 / ND-CP and Circular No. 39/2018 / TT-BTC amending and supplementing Circular No. 38/2015 / TT-BTC. Strengthen the internal inspections and examination to detect errors in price inspections in time.

customs revenues in the first half of 2018 optimistic but still worried Hai Phong Customs revenues fall by more than VND 2,000 billion

VCN- The decrease in revenues of Hai Phong Customs is 16.24% over the same period in 2017, ...

Along with that, strengthen the inspections of goods' names, codes and tax amounts in Customs clearance and post-clearance stages to detect and handle cases of incorrect declaration of codes. Review the exemption, reduction, refund and non-collection of tax in accordance with the tax law. Detect errors and violations in tax exemption and reduction activities, focusing on examining projects and cases eligible for tax incentives and solve problems in the case where there are differences between the Law on Export Tax and Import Tax No. 45/2005 / QH11 and the Law on Export and Import Tax No. 107/2016 / QH13.

By Thu Trang/ Hoang Anh