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Customs sector: A breakthrough year in budget collection

11:14 | 31/12/2018

VCN - The first time in history, the state budget revenue in 2018 of the Customs sector has reached and exceeded VND 300 trillion. This can be considered as a breakthrough in the budget collection of the Customs sector in the context of 2018 is the year of deep reduction of tariff lines according to the implementation of the commitments of Free Trade Agreement (FTA).

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Chart of state budget revenue 2014 - 2018. (Unit: Trillion VND). Chart: Minh Hoan.

Many types of goods decreased tax by 0%

The reason for considering 2018 is a breakthrough year in revenue collection because this is the year that the import and export tax revenues of Customs units are greatly influenced by the implementation of tariff reductions from FTAs. It is noteworthy that over 90% of the goods under the ATIGA Agreement (ASEAN Trade in Goods Agreement) has the import tax rate reduced to 0%, in which the rate of import of 9-seat or less cars is greatly reduced, from 30 % down to 0%.

The obvious impact can be seen in the first 3 months of 2018, when the turnover of tax import and export increased by 17.7% compared to the same period last year, but the state budget revenue of the Customs sector decreased by 3.06% over the same 2017 period. Only the whole automobile under 9 seats, due to the influence of Decree 116/2017 / ND-CP, the first 2 months of 2018 only sparsely imported (about 20 units), in March Newly imported 2,397 units with a value of 52 million USD.

In the second quarter, the budget revenue of the Customs sector gradually improved. Import-export turnover in the first 6 months was estimated at 225.29 billion USD, up 13% over the same period in 2017 (in which export turnover was estimated at 113.93 billion USD, up 16% and import turnover was estimated at 113.36 billion USD, up by 10.2%. The rate of state budget revenue increase in the first 6 months instead of the first quarter increased by 2.04% compared to the same period in 2017.

Tax revenues of Customs in the first 6 months increased mainly because of imported petroleum. According to an analysis of the Import and Export Tax Department (General Department of Customs), imported petrol and oil increased both in volume and value (up 10.4% in volume and 38.8% in value over the same period last year). In June alone, imports of petroleum increased by 3.5% over the previous month and the value was 900 million USD, up 3% from the previous month; export volume in 6 months / 2018 is estimated at over 7 million tons, the value is estimated at 4.61 billion USD.

However, another item, which is already a big tax revenue source of the Customs in the previous years, is also the most impacted item on the state budget revenue of the Customs in the first months of the year as the original automobile. All types of vehicles have decreased significantly. As of June 15, the total number of imported cars of all kinds was 10,084, worth nearly 274.4 million USD (of which there were 7,551 cars under 9 seats), with a turnover of 171 million USD, down 78.6% volume and 70.9% reduction in value compared to the same period in 2017.

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Customs control at Cai Lan port (Quang Ninh)

Accurate data and appropriate solutions

Under the determination to strive to complete the collection target of the state budget revenue, at the beginning of the year 2018, the units which belong to the whole sector have made efforts to implement revenue management and anti-revenue solutions to achieve the highest results.

The budget revenue of the customs sector has made progress, the total state budget revenue in the first 9 months of 2018 reached VND 225,116 billion, gaining 79.54% of the estimate, gaining 76.83% of the target, increasing 5.21% with the same period of 2017, thanks to persistent application of budget collection measures. The revenue of the first 9 months of 2018 increased sharply compared to the estimate and compared to the same period in 2017, due to the increase in revenue from petroleum and crude oil NK. In particular, the most significance is the imported petroleum products; the price of crude oil has increased from 50 USD / barrel at the time of construction to over 75 USD / barrel, the average price of finished petroleum products in the first 9 months in the market. The world market has increased from 26.17 to 38.1% compared to the same period in 2017 and 2018. In addition, since the beginning of the year, the USD index has increased by more than 3%, which is also the cause of revenue from import and export taxes. This helped the State budget revenue in 2018 of the Customs sector increase by more than VND 20 trillion. Also thanks to petroleum products, at some local customs, the situation of budget collection is also quite satisfactory such as Khanh Hoa Customs, Quang Ngai Customs, Quang Ninh Customs.

The positive situation is reality, but the General Department leaders have asked the units in the whole industry not to be subjective. By the fourth quarter, with the determination to make the best effort to complete the target of VND 293 trillion, the Ministry of Finance assigned the General Department of Customs to issue official dispatches to the provincial Customs Departments. The city adjusted its initial budget revenue target for 2018 in line with actual revenue situation and early guidance, the ability to collect and influence factors in the remaining months of the year. Accordingly, up to 28/35 Customs Departments have to adjust the targets of the State budget revenue and expenditure targets. At the same time, it is required units based on the functions and tasks assigned to build detailed plans and organize the most effective implementation of budget collection solutions in the remaining months of the year, in which emphasizes on the solution group facilitating production and business activities of enterprises, reforming administrative procedures, shortening goods clearance time in parallel with the group of solutions to combat trade frauds and tax losses to complete only The target is to be assigned by the General Department of Customs to the units.

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The above efforts show that the Customs has actively implemented many synchronous solutions to strive to complete the state budget revenue only. Thanks to the flexible and drastic collection solutions to deploy the collection tasks until the last day in 2018, the Customs sector has achieved the highest state budget revenue. By the end of December 24, the budget revenue reached more than 305.922 trillion dong, equaling 108.1% of the estimate, reaching 104.41% of the targets assigned by the Ministry of Finance's Party Committee.

Reach the milestone

Looking back on the state budget revenue of the entire Customs sector in the past 14 years, the state budget revenue of the Customs sector always accounts for 25-30% of the total state budget revenue. In 2004, the total state budget revenue of the Customs sector reached over VND 46 trillion, an increase of 700 times compared to 1990. And from 2004 to now, this revenue has increased 5 to 6 times, if 2005 revenue the budget of the Customs sector reached about VND 50 trillion; by 2014 this revenue reached VND 250 trillion, and in 2015 reached VND 260 trillion, in 2016 reached VND 272 trillion, in 2017 reached VND 297 trillion.

By Thu Trang/Bui Diep