30 C
Ho Chi Minh City
Wednesday, June 19, 2024

Tax collection slows as it nears full-year goal

The Saigon Times

Must read

HCMC – Though tax collections in the year through September had almost hit the full-year goal, tax revenues from some industries have dropped steadily since July, according to the Ministry of Finance (MOF).

The tax revenue this year is expected to surpass the estimate by VND202,400 billion, or over 14% higher than planned, the ministry reported during a meeting on October 22. By the end of September, the tax revenue had reached 94% of the full-year target.

Data from MOF showed that monthly tax collections in the first seven months of the year was equivalent to 11% of the annual target on average, but the proportion dropped in the following months to 9.2% in August and 6.7% in September. 

Crude oil and import-export activities, which are among the biggest contributors to the state budget revenue, also showed signs of deceleration.

Tax revenue from crude oil is estimated to surpass the full-year target by VND39,800 billion, but it has dropped lately due to a price plunge. It is forecast to stay low until the year’s end.

Meanwhile, import-export tax collection in the first nine months rose 15% year-on-year, but the tax revenue in the third quarter was 7.8% lower than in the second quarter and 13.5% in the first quarter.

The decrease resulted from difficulties facing the manufacturing sector, leading to a plunge in the import-export turnover, the ministry explained. 

It added that in the fourth quarter, the tax sector has to refund VND4 trillion in tariffs for auto part importers and exporters as per Decree 101/2021 and Decree 18/2021.

Tax debt had amounted to some VND126,500 billion in the year through September, up 8% over the same period last year. Of the amount, debt recovery edged up 0.2% versus the same period of 2021, at VND60,000 billion, the ministry said.

The Government has proposed an estimate for the 2023 tax collections at over VND1,620 trillion to the National Assembly, with VND1,330 trillion collected from domestic tax revenue, VND42 trillion from crude oil, and VND239 trillion from import-export activities.

More articles


Please enter your comment!
Please enter your name here

Latest articles