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Customs to reverse fall in tax collection

Update: June, 11/2012 - 11:06

HA NOI — The Customs Department has reported a plunge in tax collection, despite the country's increase in import and export, leading to a push to reverse the trend.

In the first five months the year, Customs collected VND77.8 trillion (US$3.7 billion) in tax or 34.7 per cent of its forecast, a fall of 10 per cent over the same period last year.

Customs said the country's total import and export turnover in the first five months was $86.3 billion, up 14.6 per cent on the period last year.

The fall in tax collection was attributed to less key products such as crude oil, coal, motorbikes and automobiles, which have a high-import tax, Customs said.

The global economic downturn also had an effect, plus tighter monetary policies to curb inflation had reduced access to loans and thus reduced business activity and taxes.

Besides, import taxes had been cut to assist failing businesses meaning that, for instance, Hai Phong Customs had collected VND10.3 trillion ($494 million), 30.96 per cent down on the previous first five months.

Customs has outlined measures to increase the tax take. Customs agencies were urged to put pressure on businesses to collect overdue taxes and limit bad debts, though the latter were expected to remain high.

Also the department said it would clamp down on re-export goods, bonded warehouses, databases and goods which were suspected to be involved in trade frauds.

Meanwhile, Customs has continued to improve its operation to create incentives for businesses and to outline proposals for revised tax management. — VNS

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