Budget Revenue Reaches 54.1% in H1

9:38:01 AM | 7/27/2023

The General Department of Taxation (GDT) recently conducted an online conference to review tax work in the first half of the year and preview tasks for the second half. The event was attended by Deputy Minister of Finance Cao Anh Tuan and GDT Acting General Director Mai Xuan Thanh, along with representatives from the GDT, the General Department of State Reserves, and the Ministry of Finance.

Tax officials discuss achievements and challenges in the first half of the year and set goals for the second half at the conference

According to the report released at the conference, the tax sector generated total budget revenue of VND743,003 billion (US$32 billion) in the first six months of 2023, equivalent to 54.1% of the full-year target. This included VND30,617 billion from crude oil (72.9% of the target) and VND712,386 billion from domestic revenue (53.5% of the target).

The GDT attributed the strong performance in domestic revenue in H1 2023 mainly to good-growing CIT, dividend and profit. In addition, there was unexpected revenue like over VND20,000 billion from rebalancing at the State Bank of Vietnam (versus over VND2 trillion a year ago), more than VND8,700 billion from other unexpected budget revenues, and VND6,500 billion from overdue debt collection in some major projects.

The tax sector reported 11 high performing areas out of 20 (fulfilling over 55% of the target): Collection from State-owned enterprises (58.1%), personal income tax (56.2%), dividend income and retained profit (59.8%), other budget revenue (106.8%), revenue - expenditure difference at SBV (499.7%), and resource royalty (68%). Compared with a year ago, 10 out of 20 tax items and fields expanded. Nationwide, 19 out of 63 provinces and cities completed over 55% of the target and 15 localities finished 50-55%.

During the first half of 2023, the tax sector implemented tax and land rent extension, exemption and reduction policies to support businesses and individuals in overcoming difficulties and recovering their business operations. To further assist people and businesses in living through hardships and accelerating economic recovery in 2023, the Government issued Decree 12/2023/ND-CP on April 14, 2023 on tax and land rent extension; Decree 36/2023/ND-CP on June 21, 2023 on extension of excise tax payment incurred in June, July, August and September 2023 for domestically produced or assembled automobiles.

Tax authorities at all levels promptly informed taxpayers of the tax and land rent extension policy to ensure that all taxpayers understood the support policy. In addition, some new business and public support policies were issued in the first half of 2023. VND19,059 billion was estimated to be spent on supporting people and businesses. Moreover, tax authorities at all levels also drastically implemented new public and business support policies such as Decree 41/2023/ND-CP on June 28, 2023 on a 50% reduction in registration fee on domestically manufactured and assembled automobiles and similar vehicles; Decree 44/2023/ND-CP on June 30, 2023 on a 2% VAT reduction under Resolution 101/2023/QH15 dated June 24, 2023.

A GDT representative said that state budget revenue in the first months of 2023 still matched the estimate. However, given that the world economy faced numerous difficulties due to inflation pressure and monetary tightening, the Government of Vietnam asked the National Assembly to consider other business support solutions in the last months of the year. This move may reduce domestic revenue in 2023 and place pressures on State budget collection tasks in 2023. To realize the budgetary revenue targets in the year, tax authorities at all levels will continue to focus on key tasks and solutions with the highest determination like information technology application in tax management, effective use of revenue and business support.

Le Hien, Vietnam Business Forum