Thanh Hoa Customs: Imported Crude Oil Accounts for 75% of Total Revenue

9:47:06 AM | 2/6/2020

The frequency of crude oil and petrochemical imports is stable, an average of 2.5 ship calls a month, according to the Thanh Hoa Customs Department. This was the most important factor to the sharp growth of revenue of the unit in 2019.

Currently, taxable commodities are mainly crude oil, chemicals, petrochemical materials, machinery and equipment, white stone, wood chips, clinker, plaster, tobacco inputs and medicinal materials.

According to the Thanh Hoa Customs Department, it collected more than VND5,061 billion for the State Budget by the end of April 2020, up 52.48% year on year and equal to 53.85% of the full-year target.

The key drive of revenue growth at the Thanh Hoa Customs Department is imported crude oil for Nghi Son Petrochemical Company Limited. In the first four months of 2020, the company imported 14 shipments of crude oil and paid nearly VND3,800 billion of taxes to the State budget, accounting for 75% of the department’s total revenue.

In addition, equipment and machinery import also increased sharply. Major importers included Nghi Son 2 Power Co., Ltd and Nghi Son Iron and Steel Joint Stock Company. This item contributed 17% to the budget revenue or over VND861 billion.

However, due to crude price volatility, the Thanh Hoa Customs Department estimated that VAT collected from this item will be just over VND2,300 billion in the last seven months of 2020. This change will greatly impact its budget revenue result in 2020.

Source: Vietnam Business Forum