Customs Sector’s Budget Revenue Falls Nearly 18%

10:48:29 AM | 5/22/2023

The decline in export and import value resulted in a 17.98% year-on-year reduction in tax revenue collected by the customs sector in the first four months of 2023, said the General Department of Vietnam Customs (GDC). Vietnam reported an export and import value of US$206.27 billion from January to April 2023, down 15.5% year on year. Of the sum, exports contracted 13.2% to US$106.93 billion and imports tumbled 17.9% to US$99.33 billion.

The Customs sector steps up reforms and facilitates trade to ensure budget revenue

The decreased value of imports and exports interrupted tax collection performed by the customs sector. Specifically, by the end of April 30, it raked in VND122,886 billion, equaling 28.91% of the full-year target and falling 17.98% (or a decrease of VND26,940 billion) from the same period in 2022.

The decline in budget revenue was attributed to an 18.2% year-on-year fall in taxable import and export value to US$40.38 billion in the four-month period.

The taxable import value in the reported period was US$38.07 billion, down 17.9% year on year, and the taxable export value was US$2.30 billion, down 22.3%.

Furthermore, a steep slump was seen in some key commodities. Specifically, the import of raw materials, machinery and equipment, and spare parts such as coal, chemicals, plastics, iron and steel, textile materials, electronic components and auto parts plunged 29.6% year on year to US$13 billion, accounting for 34% of total imports. This resulted in a budget revenue decline by VND13,100 billion from the same period in 2022.

Petroleum imports plummeted 7.1% year on year to 2.53 million metric tons worth US$2.1 billion, down 19.5%. This caused the tax revenue to shrink by VND2,600 billion. In the first four months of 2023, the customs sector refunded import duties worth nearly VND1,000 billion on auto parts as per Articles 7a and 7b of Decree 101/2021/ND-CP.

According to the General Department of Vietnam Customs, as of March 31, the customs sector recovered and handled overdue tax of VND67.94 billion. The amount of overdue tax was VND5,656.18 billion, down 3.37% from December 31, 2022.

By Le Hien, Vietnam Business Forum