Economic Sector

Last updated: Tuesday, March 26, 2019


Striving to Surpass Budget Revenue Target

Posted: Wednesday, December 19, 2018

The General Department of Vietnam Customs recently hosted a press conference to announce results and solutions for budget collection and overdue tax recovery, seeking to complete the targeted budget revenue and assess one-year implementation of electronic tax payment via commercial banks and 24/7 customs clearance in 2018. Our reporter has an interview with Mr Luu Manh Tuong, Director of Export and Import Tax Department under the General Department of Vietnam Customs. Le Hien reports.

Could you please tell us about tax collection solutions and results in the first 11 months of 2018?
The General Department of Vietnam Customs was assigned to collect VND283 trillion for the State Budget in 2018 by the National Assembly, the Government and the Ministry of Finance, under Decision 2465/QD-BTC dated November 29, 2017, of the Ministry of Finance.

The customs sector collected VND284 trillion of tax in the year to November 30, 2018, equal to 100.42 per cent of the full-year estimation, 97 per cent of the yearly target, and 107.27 per cent from the same period of 2017 (VND264,947 billion). The outcome came from rising export and import value. The trade value was estimated at US$439.96 billion in the first 11 months of the year, representing a year-on-year growth of 13.3 per cent. Specifically, the export value was US$223.76 billion, up 14.5 per cent, and the import value rose 12.1 per cent to US$216.20 billion. The import value of petroleum products increased as crude oil price was higher than the time of making estimations. The tax value from petroleum products was nearly VND20 trillion higher than the estimation and VND3,700 billion higher than a year ago.

In addition, to fulfil and exceed the budget revenue target in 2018, right from the beginning of the year, the Director General of the General Department of Customs issued Directive 555/CT-TCHQ on tasks and targets of tax collection in 2018 assigned to provincial/municipal customs departments and a lot of documents detailing professional operations in tax valuation, classification, origin and management. Thus, tax authorities collected VND1,425.7 billion of overdue debt as of November 30, 2018. Anti-smuggling, trade fraud, post-clearance inspection, valuation and classification brought in about VND2,954 billion.

Besides, to facilitate taxpayers to settle tax payment anytime, anywhere and with any means, the General Department of Customs signed cooperation agreements with 39 banks, with 24 banks piloting 24/7 electronic tax payment. By the end of November 2018, VND269,990 billion was collected through this cooperation, accounting for 95 per cent of total revenue (VND284,202 billion).

What solutions will you adopt to increase revenues, prevent tax loss and improve tax debt recovery in the coming time?
First of all, the sector will focus on reviewing and grasping tax debts at customs units; classify overdue taxes into receivable debts and irrecoverable debts to have best measures to each taxpayer; intensify inspection of commodity names, codes and tariff rates at customs clearance and post-customs clearance stages in order to detect and handle cases of incorrect or unclear declaration of commodity names and codes to seek lower duty rates.

It will strengthen inspections into highly valued goods; review tax exemption, reduction, refund and non-collection; detect errors and violations in tax exemption, reduction and refund; focus on examining projects and cases eligible for tax preferences which are different in the Law on Export Tax and Import Tax 45/2005/QH11 and the Law on Export and Import Tax 107/2016/QH13.

The sector will collaborate with relevant forces such as police, border guard, coast guard and market watchdog to share information, understand situations, perform patrols, plan and carry out consistent professional measures to prevent and fight against smuggling, trade fraudulence and tax evasion.

The sector will step up post-clearance inspection and particularly focus on high-value goods, high-tariff goods or goods imported from questionable markets, goods that are deliberately declared with lower value or wrong categories to seek lower tax, tax exemption or refund.

What do you think about electronic tax payment via banks and 24/7 customs clearance after one year of deployment?
The General Department of Vietnam Customs signed cooperation agreements on tax collection for the State Budget with 39 commercial banks, of which 24 already launched electronic tax payment and 24/7 customs clearance. To date, 3,235 companies have applied 24/7 electronic tax payment and 21 banks and branches reported VND14,902 billion and 87,006 transactions conducted in this method. Three lenders, VCB, BIDV and Vietinbank, accounted for 79.1 per cent of the total tax collected via this method.

The launch of 24/7 electronic tax payment is to add a new payment channel to facilitate taxpayers to fulfil their obligations to the State Budget, and particularly support them to open accounts at foreign banks, fill in multiple tax declaration forms and carry out customs clearance procedures outside working hours.

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