June 02, 2020 23:37

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Which items cause reduction of revenue collection for Ho Chi Minh City Customs?

09:55 | 27/04/2020

VCN - Many imported goods have decreased, leading to a decrease in the revenue of Ho Chi Minh City Customs of over VND3,600 billion. In particular, imported cars accounted for over VND2,400 billion.

which items cause reduction of revenue collection for ho chi minh city customs
Imported cars dropped sharply, causing the revenue of Ho Chi Minh City Customs to drop more than VND 2,400 billion. Photo: T.H

According to Ho Chi Minh City Customs Department, import turnover of goods which implemented procedures though Ho Chi Minh City border gates in the first half of April 2020 reached $2,686.28 million. Accumulated to April 15, 2020 reached $16,713.13 million, up 3.57% over the same period in 2019.

However, according to the latest data of Ho Chi Minh City Customs Department, from the beginning of the year until April 15, 2020, although import turnover increased, the decrease in turnover has fallen in some commodity groups which have high import duty, so it affects the revenue collection of the unit.

The item decreasing the most was cars with less than 9 seats, reaching $198.77 million, down 26.2% over the same period in 2019, resulting in a reduction of about VND 2,400 billion due to special consumption tax.

Other imported means of transport and spare parts reached $183.32 million, down 41.4% over the same period in 2019, reducing revenue by about VND 500 billion.

Besides that, imported iron and steel reached $508.62 million, down 12.7% over the same period, reducing revenue by VND 700 billion; aviation fuel, reaching $243.69 million USD, down 33.6%, reducing revenues of about VND 580 billion due to environmental protection tax.

Notably, the items which have increased in turnover have low import duty rates (most of them have import duty rates of 0%) so the increase in tax amounts cannot compensate for the amount of reduced tax, resulting in a strong impact to the revenue of Ho Chi Minh City Customs.

According to the forecast of Ho Chi Minh City Customs, in the second half of April 2020, the situation of revenue collection will also be very difficult. The reason is that, even though import-export turnover has increased, the turnover of taxable items such as iron and steel, cars with less than 9 seats, aviation fuel, will likely continue to decrease, so the revenue collection will also decline as almost all commodity production of the European Union, Australia, the United States and South Korea are seriously affected by the pandemic.

Along with that, Vietnam has also deployed social distancing and continued implementing until April 22, 2020, so it has caused an impact on import and export activities, affecting revenue collection.

From the beginning of 2020 to the end of April 15, 2020, the revenue which was actually paid to the State budget of Ho Chi Minh City Customs Department was VND 28,711 billion, reaching 24.96% of ordinance estimate (equivalent to VND 115,000 billion) and reaching 23.72% striving target (equivalent to VND 121,000 billion). Decreasing 11.3% (absolute reduction of VND 3,653 billion) compared to the same period of 2019 (reaching VND 32,364 billion). It is determined that this was the general context in the country. Ho Chi Minh City Customs Department has implemented many solutions, especially trade facilitation to support the business community in order to overcome difficulties and challenges, increasing revenues for the state budget.

By Lê Thu/Thanh Thuy