State Budget Revenue Grows 10.1%

The Ministry of Finance reports that the total state budget revenue for the first four months of 2024 was estimated at VND733.4 trillion. This figure represents 43.1% of the full-year target, marking a year-on-year increase of 10.1%.

Domestic revenue collection fares well

According to a report from the Ministry of Finance, state budget revenue was forecast at VND175.6 trillion in April, equal to 10.3% of the yearly target and 94.4% of the first-quarter monthly average (about VND10.4 trillion lower). Of the sum, domestic revenue was VND149.3 trillion in the month, equal to 10.3% of the target; budget revenue from crude oil was VND5.5 trillion, equal to 12% of the target; and export-import balance budget revenue was VND20.8 trillion, equal to 8.1% of the target and 101.6% of the first-quarter monthly average.

In the first four months of the year, total state budget revenue was estimated to reach VND733.4 trillion, equal to 43.1% of the full-year target and up 10.1% year on year. Notably, central budget revenue fulfilled 46.5% of the target and the local budget revenue completed 39.7% of the estimation.

Domestic revenue was projected to account for VND629.9 trillion from January to April, equal to 43.6% of the yearly target and up 12.9% from a year earlier. Budget revenue from crude oil accounted for VND21.2 trillion, equal to 46.2% of the target and 0.6% higher than the same period of 2023. Export - import balance revenue was VND82.2 trillion, equal to 40.3% of the target and down 5.7% from the same period of 2023.

The Ministry of Finance said that January-April total domestic revenue was quite good relative to targets, largely because companies provisionally paid three out of five periods of corporate income tax and the remaining profit (including tax in the fourth quarter of 2023 rolled over to the first quarter of 2024) was accounted in this period. Hence, corporate income tax revenue was forecast to fulfill 56.5% of the full-year target; revenue from dividends and remaining profits realized 44.8% of the target; the budget surplus was over VND31.8 trillion, equal to 175% of the target (VND18.2 trillion); and lottery revenue achieved 51.1% of the target. However, if these items were excluded, the budget revenue in the first four months of 2024 would accomplish 35.8% of the yearly target.

Additionally, 10 out of 12 revenue sources met their relevant targets. Particularly, the three from economic sectors fulfilled 45.7% of the annual target; personal income tax completed 45.1%, and other revenue sources realized 48.7%. Nevertheless, two tax items underperformed: Budget revenue from mining rights and housing and land revenue. By locality, the Ministry of Finance’s report said that 25 localities realized over 40% of their domestic revenue and 54 localities posted year-on-year revenue growth.

Strengthening revenue management

As of April 15, 2024, tax authorities conducted 8,900 inspections, examined 77,800 tax declarations filed by businesses, and imposed tax recollection of VND8.1 trillion. Of the sum, VND2.5 trillion was assigned to be paid to the State Budget (already settled VND1.3 trillion). The tax sector targeted to collect VND32.1 trillion of overdue tax in the first four months.

The tax sector has also focused on promptly and effectively applying solutions to enhance revenue management and closely coordinating with relevant forces to fight against smuggling, trade fraud and tax evasion. Tax authorities have checked and reviewed all taxpaying companies to figure out unworking ones; review and establish presumptive taxes and license fees; strictly inspect and control VAT refunds in compliance with the applicable law.

The tax sector has accelerated digital transformation, modernization and information technology application in tax collection management; and expanded the application of electronic invoices created by cash registers. According to statistics, all 15,935 (100%) gasoline filling stations across the country currently issue electronic invoices for every sale. Tax authorities have also continued to work with the Ministry of Public Security to promote the standardization of citizen identification codes as tax codes.

Regarding tax revenue from importing and exporting activities, the total revenue of taxable merchandise imports and exports as of April 15 was US$40.4 billion, up 14.5% year on year. Specifically, taxable exports rose by 17% and taxable imports climbed 14.4%. Although the import and export turnover advanced robustly, tax revenue was forecast to fall by 3.3% year on year, mainly due to the VAT reduction of 2% as per Decree 94/2023/ND-CP dated December 28, 2023 of the Government. This policy resulted in a VAT decrease of VND5,500 billion.

In addition, as of April 15, customs agencies carried out 462 inspections and collected extra VND96 billion of tax for the State Budget; closely coordinated with related forces to fight against smuggling, trade fraud and counterfeiting, seize 3,400 violations with goods valued VND5.8 trillion, and collect VND116.3 billion for the State coffers.

By Huong Hau, Vietnam Business Forum