Customs faces difficulties fulfilling revenue target due to Covid-19 effect 

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In March and April, import turnover of iron and steels decreased by 15.7% compared to 2019. Photo: Pham Tram

Revenue sharply decreases in March and April

Total import-export turnover of the country in the first four months of 2020 reached US$158.94 billion, upby 0.85% compared to 2019. Of which, export turnover was $80.86 billion, increasing by 2% and import turnover was $78.08 billion, decreasing by 0.3 % compared to 2019. The total taxable import and export turnover reached$33.41 billion, decreasing by 9.46% compared to 2019. Of which, taxable export turnover was$1.9 billion, decreasing by 8.8% compared to 2019; taxable import turnover was$31.51 billion, decreasing by 9.5 % compared to 2019.

According to the import-Export Duty Department, in January and February, due to the continued implementation of commercial contracts, the quantity of import and export goods decreased insignificantly. But in March and April, the Covid 19-pandemic spread in many countries andsome border gates and airports were closed, causing asharp decline in the volume of major import and export goods and affecting revenue collection and payment. Turnover of some major commodity streams sharply decreased in April such as CBU cars andpetroleum products.

Specifically, taxable import turnover of some major commodities sharply plunged such as CBU cars of less than nineseats reached $459 million, decreasing by 35.8%, tax payablereached VND7,815 billion, down VND5,076 billion compared to 2019; petroleum products reached VND768 million, down 41%, tax payable reached VND3,799 billion, down VND3,237 billion compared to 2019; machinery, equipment and spare parts reached VND5.55 billion, down 9.6%, tax payable reached VND14,548 billion, down VND1,522 billion compared to 2019; automobile parts and components reached$1 billion, down 13.7%, the tax payable was VND5,544 billion, fallingVND1,259 billion compared to 2019; computers, electronic products and components slumpedby 46.5% in value compared to 2019; iron and steel of all kinds plungedby 15.7% in value.

Commodities such as crude oil fell18.4% in value compared to 2019; ores of all kinds decreased by 18.6% in volume and 23.9% in compared to 2019.

The department’s representative said that normally, in addition to the revenue from import tax of these commodities, their revenues from VAT, STC and environmental protection tax contribute significantly to State revenue. However, due to the sharp decrease in the turnover of those factors, their revenues sharply plunged.

Due to the impact of the pandemic, import-export activities in some border gates were delayed, impacting the supply of raw materials for production. This has posed a great pressure on revenue, especially from March to now.

The representative said total import and export revenue in the first four months of the year reached VND101,627 billion, accounting for 30.07% of the estimate, equal to 28.63% of the desired target, down VND13,552 billion, a decrease of 11.77% compared to 2019 (VND115,179 billion).

Meanwhile, revenue collection by some provincial and municipal customs departments was greatlyaffected by the pandemic, especially the revenue of major customs departments such as Ho Chi Minh City Customs Department collected VND32,810 billion, reaching 28.53% of the estimate and decreasing by 14.77% compared to 2019; HaiPhong Customs Department collected more than VND18,530 billion, decreasing by 20.27%; and Bac Ninh Customs Department collected VND3,050 billion, decreasing by 7.77% compared to 2019.

Revenue of departments such as Ba Ria-Vung Tau Customs Department fellby 11.85% compared to 2019, reaching VND5,320 billion, Dong Nai Customs Department’s revenue reached VND5,073 billion, downby 20.5% compared to 2019.

The representative said Ba Ria-Vung Tau Customs Department’s revenue was affected by the world and domestic petroleum prices hitting abottom. Dong Nai Customs Department’s revenue was greatly affected asthere are many headquarters and manufacturing plants of Chinese enterprises in the locality.

Among 35 provincial and municipal customs departments, eight departments hadhigh revenues. Until April 30, these department’s revenues decreased by 13.9% compared to 2019 (equivalent to about VND12,750 billion).

Take initiative in monitoring impacts on increase and decrease in revenue

The Covid-19 pandemic has directly affected major countries and markets in the world and import and export activities willstill be limited in the next months. This will have a strong impact on customs revenue collection and payment. To fulfill the revenue target in 2020, the Customs sector faces challenges in this context.

To support enterprises to quickly recover the business, production, import and export, thereby, strive to fulfill the revenue target amid the impacts of Covid-19, the General Department of Vietnam Customs requested customs departments take the initiative in analysing, evaluating and monitoring the impacts on increase and decrease in revenue in the second quarter.

According to Deputy Director of the General Department of Vietnam Customs (GDVC) LuuManhTuong, the department will continue to direct provincial and municipal customs departments to monitor and assess revenue collection in the second quarter and the following months to promptly analyseand evaluate changes in import and export turnover, taxable import and export commodities as well as markets thatsuffered in major countries, promptly report to the General Department's leaders for analysis and report to authorities to provide timely and appropriate solutions to ensure the revenue target in 2020.

The GDVC has supported and removed difficulties for import-export enterprises, including removing difficulties and problems for enterprises exporting rice, medial mask, and medical supplies to increase revenue to fulfill the revenue target 2020.

In addition, the Customs will not inspect and check enterprises that have signs of violations under the Prime Minister's direction.

Customs will promote the application of online public service system in e-customs procedures and coordinate with the Treasury and banks to implement e-tax payment 24/7, ensure quick customs clearance for enterprises; create favourable conditions for businesses in carrying out procedures for tax refund, tax exemption, extension of tax payment.