Thanh Hoa Customs: Imported crude oil accounts for 75% of total revenue

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Operations at the Le Mon Port Customs Branch (Thanh HoaCustoms Department). Photo: H. Nu

Currently, taxable items in the area are mainly crude oil, chemicals, petrochemical raw materials, machinery and equipment to create fixed assets, white stone, wood chips, clinker, plaster, raw materials for cigarette production and raw materials for western pharmaceutical production.

According to Thanh Hoa Customs Department, by the end of April 2020, the department collected more than VND5,061 billion, equivalent to 52.48% over the same period in 2019, reaching 53.85% of the target.

The remarkable revenue of Thanh Hoa Customs Department depends mainly on imported crude oil of Nghi Son Petrochemical Company Limited. In the first four months of the year, the company imported 14 shipments of crude oil, contributed nearly VND3,800 billion to the state budget, accounting for 75% of the total revenue of the unit.

In addition, Nghi Son 2 Power Co., Ltd., Nghi Son Iron and Steel Joint Stock Company, etc., also accelerated imports of machinery and equipment to create fixed assets, thereby contributing to the state budget over VND861 billion, accounting for 17% of the department’s total revenue.

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However, due to the change of crude oil price, Thanh Hoa Customs Department estimates that in the last seven months, the VAT collected from this item will be only over VND2,300 billion. This will greatly impact the department’s revenue in 2020.