Revenue collection continues to drop

The deadline extension of payment for enterprises facing difficulties is implemented. Source: Internet

Extending about VND 66.4 thousand billion

According to calculations, if including tax and land rent which has an extended deadline for tax payment in accordance with the provisions of Decree No. 41/2020/ND-CP dated April 8, 2020 of the Government (is VND 66.39 thousand billion), State revenue in the eight months was estimated at 62.7% of current appropriation, down 5.8% from the same period in 2019.

In the revenue structure, domestic revenue collection in the eight months was estimated at VND 733.98 thousand billion, 58.1% of the estimate, down 9.7% over the same period in 2019.

By the end of August, there was 5/12 revenues meeting estimation progress (reaching over 67%), most of them were small revenues; the remaining seven revenues, including important revenues from three economic sectors, did not ensure the estimate progress and decreased sharply compared to the same period in 2019.

Implementing Decree No. 41/2020/ND-CP, the tax authority has received 184,906 dossiers requesting to extend the deadline of tax payment and land rental from 128,679 enterprises and 56,227 business households and individuals with the total tax and land rent about VND 66.4 thousand billion.

Besides that, tax authorities carried out about 41.25 thousand cases of on-site inspections at businesses; examined 357.3 thousand tax declaration dossiers of enterprises, proposed handling and collect to the budget and reducing losses by nearly VND 34.7 thousand billion, of that collect to the State budget VND 12.1 thousand billion (revenue collected into the State budget was VND 5,918 billion); actively handle and recover VND 17.5 thousand billion of tax arrears transferred from the previous year.

It is estimated the whole country has 28/63 localities collecting domestic revenue ensuring the estimation progress (topping 67%) and higher than the average of the whole country (excluding land use fees, 8/63 localities collecting domestic revenue reached 67% of the current appropriation); some localities have low collection progress (less than 55% of current appropriation); 23/63 localities collected higher than the same period, while 40 localities collected lower than the same period.

Revenue collected from crude oil was estimated at VND 25.48 thousand billion, as 72.4% of current appropriation, down 35.6% over the same period in 2019.

Collecting balance revenue from import-export activities in the eight months was estimated at VND 121.5 thousand billion, equal 58.4% of current appropriation, down 19.4% over the same period in 2019, based on total estimated tax revenue reaching VND 200.3 thousand billion, 59.3% of current appropriation, down 15.1% over the same period in 2019; VAT refund under the regime is some VND 78.8 thousand billion.

The Covid-19 pandemic in the world is complicated, affecting international trade. The total import and export turnover of goods in the first eight months of the year was estimated at $337.28 billion, approximately the same rate period in 2019, of that import turnover of a number of items contribute a large amount of revenue is decreased leading to the reduction in revenue collection from import and export activities.

Disbursement still low

Regarding State budget expenditure, total expense in eight months was equal to 55.8% of the current appropriation, up 8.2% from the same period in 2019. In particular, the disbursement of public investment capital and development investment expenditures hit nearly VND 221, 8 thousand billion, equalling 47.08% of the current appropriation, but still low compared to requirements; interest payment was VND 74.39 thousand billion, equaling 62.9% of current appropriation, down 3.1% over the same period in 2019; recurrent expenditures hit VND 673.3 thousand billion, equivalent to 63.7% of current appropriation, up 3.6% over the same period in 2019.

Up to now, the State budget has spent about VND 16.29 thousand billion on pandemic prevention and support for people facing difficulties caused by the Covid-19 pandemic. Besides that, about 13.6 thousand tonnes of national reserve rice has been provided to support the people, rescue hunger for the people and overcome the consequences of natural disasters at the start of the year.

The implementation of Resolution No. 122/2020/QH14 in the 9th meeting session, 14th National Assembly dated June 19, 2020, Resolution No. 84/NQ-CP dated May 29, 2020 of the Government and guidance of the Ministry of Finance, Ministries, central and local agencies have to cut the expenses using for conferences, cost of business trip and saved an additional 10% of the current appropriation of recurrent expenditure in the last months of 2020, with total funding reported to the Ministry of Finance so far of about VND 6.4 thousand billion.

Balancing the central budget and local budgets at all levels is difficult amid reducing state revenues.

By the end of August, the Ministry of Finance issued VND 177.65 thousand billion of Government bonds under the plan in 2020 to pay off the principals and receive debts with Vietnam Social Security under the resolution of the National Assembly (VND 9,090 billion) with an average term of 13.25 years and an average interest rate 2.95%/year.