September 24, 2018 12:33

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Revenue from Severance Tax accounted for only 1.36% - 4.27% of total State revenue

10:48 | 12/03/2018

VCN- Over the past time, together with current collection policies related to environmental protection, revenue from Severance Tax has contributed to implementing social economic tasks of the country, including expenditure for handling of environmental problems and reduction of the financial burden for the State in environmental protection and management.  

revenue from severance tax accounted for only 136 427 of total state revenue Leader of Ministry of Finance explains about the Bill amending 5 Tax laws
revenue from severance tax accounted for only 136 427 of total state revenue Receiving consultations on Law amending of 5 laws on tax until 29/8 /2017
revenue from severance tax accounted for only 136 427 of total state revenue Promulgating severance tax-liable price frame
revenue from severance tax accounted for only 136 427 of total state revenue
Illustrative photo

According to the calculation from the Ministry of Finance, revenue from Severance Tax has steadily increased over the years. For example, the revenue from Severance Tax in 2012 was VND 11,160 billion and in 2017, VND 44,825 billion, ensuring expenditure for environmental protection.

In the context of the complicated world economic situation, the domestic economic growth has encountered many difficulties, negatively affecting the revenue collection, expenditure and the State revenue balance in 2012-2017, many solutions have been implemented to increase revenue for the State budget, including Severance Tax.

The statistics showed that revenue from Severance Tax was VND 11,160 billion in 2012, VND 11,512 billion in 2013, VND 11,970 billion in 2014, VND 27,020 billion in 2015, VND 44,323 billion in 2016 and VND 44.825 billion in 2017.

Revenue from Severance Tax accounts for 1.36%- 4.27% of total State revenue and 0.3%-0.9% of annual GDP

Of which, revenue from Severance Tax for petroleum products and coal accounted for 99% of the total revenue, contributing to the shift in the State revenue collection structure toward sustainability, increasing domestic revenue from 59% (in 2006-2010) to 68% (in 2011-2015), In 2015, the revenue accounted for 74% of total State revenues in accordance with the Tax system reform strategy by 2020, gradually increasing domestic revenue.

revenue from severance tax accounted for only 136 427 of total state revenue Promulgating severance tax-liable price frame

VCN - Severance tax-liable price frame for resource groups and categories of similar physiological and chemical properties ...

According to the Ministry of Finance, the increase of revenue from Severance Tax has contributed to stabilizing domestic revenue in the context of State revenue collection encountering many difficulties due to cutting tax rate under international agreements.

By Thai Binh/Ngoc Loan