Economic recovery trend boosts budget collection at beginning of year

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State budget revenue in the first four months in 2021 increased more than in the same period last year. Photo: Ngoc Linh

Sudden increase in revenues

The latest data show the domestic revenue in the first four months of 2021 is estimated at VND468,088 billion, or 41.9% of the estimate, up 5.9% from the same period in 2020.

According to Cao Anh Tuan, Director General of the General Department of Taxation, the State budget revenue in the first four months of 2021 recorded growth compared to the estimate and the same period last year.

Subjectively, revenue collected in 2020 exceeded 16% (VND178,855 billion) the estimate reported to the National Assembly.

Objectively, the economy has tended to recover from the end of 2020, along with a sudden increase in revenues from the automobile manufacturing and assembly industry, banking, real estate transfer, capital transfer, reassessment of assets to contribute capital and land rent

According to the General Department of Taxation, another reason for the increase in domestic revenue is that the real estate market has been growing from the end of 2020, localities have continued to perform site clearance and land auction and land lease, so revenue from land was quite good compared to the estimate and higher than the same period last year.

To achievesuch results, tax authorities at all levels have launched emulation movements, striving to exceed the estimate of State budget revenue assigned from the beginning of the year.

The tax sector has focused on inspecting and reviewing the number of enterprises registering for business, the number of enterprises temporarily ceasing business and operation, especially after the Lunar New Year, to ensure tax administration for 100% of operating enterprises; strictly inspecting and controlling production and business, tax declaration and payment of enterprises;determining enterprises’ revenue as a basis for determining the presumptive tax rate therebyavoiding revenue loss.

Increase in taxable import turnover raises revenue

For import-export duties, from the beginning of the year to April 20, State budget revenue from import-export activities reached VND 112,027 billion or 35.6% of the assigned estimate, 33.8% of the desired target, up 19.85% from the same period last year. State budget revenue in the first four months of 2021 was estimated at VND120,000 billion, or 38.1% of the assigned estimate, 36.3% of the desired target and up 17.4% over the same period last year, reported the General Department of Customs.

The increase in import-export tax revenue was because Vietnam controlled the Covid-19 outbreak, production and business activities recovered and the Lunar New Year fell in February, so the import turnover of consumer products in January also grew, leading to an increase in taxable import turnover and an increase in the State budget revenue.

In addition, in the first quarter, as well as crude oil prices rising to nearly 60 USD / barrel, the increase in the price of some raw materials and transportation costs wereimportant factorsmakingthe State budget revenue go up.

Import-export turnover in the first four months of the year soared to nearly US$204.91 billion, a year-on-year rise of 28.5%. Of which, total export value was estimated at US$103.4 billion, up 27.7% and total import value was estimated at US$101.51 billion, up 29.4%.

Some items recorded large import turnover like CBU up 55.2%, increasing revenue about VND2,500 billion; mobile phones of all kinds up by 44%, increasing the revenue by nearly VND1,000 billion; machinery, equipment and tools and spare parts up 29.5%, increasing the revenue by about VND2,500 billion; and iron, steel and common metal up 34%, increasing revenue about VND2,400 billion from the same period last year.

According to economic expert Dinh Trong Thinh, economic activity in the first quarter had relatively strong growth. This is a basis to believe that the economy in general, enterprises as well as business households in particular have a good way to adapt to the new normal state, both preventing the pandemic and doing business better, better contributing to the budget.

It is hoped that in the remaining quarters of 2021, the production and business activities will continue to grow well. To make this end, Dinh Trong Thinh highly appreciates the administration of the State budget of the Ministry of Finance. This is also a highlight of the first quarter and is the result when the whole finance sector has tried to increase revenue right from the beginning of the year. Motivated by changes in the method of management and monitoring of the collection of related agencies, the revenue rate has skyrocketed amid the pandemic, which is a different point compared to previous years.

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"It can be affirmed that enterprises' adaptation to economic activities and FTAs ​​that have been signed has been better, so our import-export has grown significantly. Therefore, we may hope the budget revenue in 2021 can not only achieve the target set out at the beginning of the year but also exceed the target,” said Thinh.