Budget revenue from the state sector in the first half posted only 49.4 per cent of the figure under the ordinance or fulfilled 45.1 per cent of the targeted estimation, according to the General Taxation Department (GTD).
According to the latest statistics from the General Taxation Department, budget revenue from the state-run economic sector, the biggest budget contributor, recorded lower figures in the first six months compared to the last three years although the difference of revenue and expenses of the State Bank of Vietnam contributed up to VND1.4 trillion, 1.6 times higher than the same period last year.
In January-May period, budget revenue from the Vietnam Coal Group rose by more than a half against last year due to stable sales and robust growth. Particularly, coal export booked a year-on-year increase of some 64 per cent.
At the same time, revenue from Vietnam Steel Corporation increased 40.4 per cent compared to last year. The tax agency expects budget revenue from the steel sector because in addition to price increases, construction demand starts stepping into the high peak time.
Like steel and coal sectors, some other key industrial sectors continue obtaining high growth such as TV assembly posting a growth rate of 38 per cent, sanitation porcelain products 36.6 per cent, chemicals 17.2 per cent, construction 22.5 per cent. However, these sectors are entitled to low tax rates.
Nevertheless, such well-performed groups like the Vietnam Steel Corporation and Vietnam Coal Group are few because according to the GTD, almost all other groups recorded low revenue compared to the same period.
In the first five months, budget income from the Tobacco Corporation was only 80.7 per cent of last year’s figure, down by more than VND193 billion of which revenue from special consumption tax was VND662.3 billion or 78 per cent of the same period’s figure, income from VAT was VND105.7 billion or 88.8 per cent.
The main reason was low productivity and sales, totaling 34 per cent of the plan and reducing by 18 per cent compared to last year.
Reduction of consumption of domestically-produced tobacco was not attributed to the revised Law on Special Consumption Tax applicable from January 1, 2006 to meet requirements of the World Trade Organization (WTO). Accordingly, the new special consumption tax rate for tobacco is 55 per cent for 2006-2007 and 65 per cent from 2008 and later.
The price of crude oil export in the first half is estimated US$476/ton, per cent39/ton higher than the estimation has helped budged income from crude oil increase 25.3 per cent against last year.
However because petroleum price in the world market skyrocketed, many petroleum import portals ran a loss, hence, the Finance Ministry has twice cut import duty rates whereby lessening budget revenue.
That does not mention that the budget has to refund VND274 billion of VAT and compensate some VND22 billion/day for petroleum importers.
According to an official of the Ministry of Finance, driving up petroleum retail prices have cut down budget revenue some VND6.9 trillion.
Investment
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