Monday, May 25 2020

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Four-month State budget revenue posts drop as Gov’t offers tax relief

Update: May, 12/2020 - 14:00

 

The State budget revenue in January – April was estimated to total VNĐ491.38 trillion (US$21.18 billion), representing a drop of 5.9 per cent against the same period last year. — Photo nld.com.vn

HÀ NỘI — The State budget revenue in January – April was estimated to total VNĐ491.38 trillion (US$21.18 billion), representing a drop of 5.9 per cent against the same period last year, as the Government offered tax relief to support those affected by the COVID-19 pandemic, according to the Ministry of Finance.

In April, domestic collection to the State budget decreased by nearly 25 per cent over March to VNĐ72.5 trillion, equivalent to just 65 per cent of the figure of the same period last year.

The General Department of Taxation asked local tax departments to hasten the effort of implementing the Government’s Decree No 41/2020/NĐ-CP dated April 8 about extension of deadlines for tax and land use fee payments.

Statistics showed that the General Department of Taxation has received more than 90,000 applications for postponement of tax and land use fee payments, worth totally VNĐ26.2 trillion.

State budget revenue from crude oil in April was estimated at VNĐ2.5 trillion, VNĐ2.9 trillion lower than March as crude oil prices plunged.

In the four-month period, collection from crude oil totalled VNĐ18.3 trillion, or 52.1 per cent of the plan and up 0.9 per cent over the same period last year. Crude oil prices averaged $58 per barrel in January – April, $2 lower than the price estimated in the State budget collection plan.

Revenue from imports and exports in April was estimated at VNĐ13.9 trillion, VNĐ5.8 trillion lower than the previous month. The total in the four-month period was VNĐ63.9 trillion, a fall of 19 per cent against the same period last year, due to the impact of the virus which caused trade to collapse.

According to the ministry, the State budget revenue this year might see a drop of VNĐ150 trillion due to the impact of the virus, or even bigger if the country’s gross domestic product growth rate was below 5 per cent as per the forecasts of some international organisations.

The drop in revenue would mainly be attributed to the fallout of sectors heavily affected by COVID-19, like services, tourism, trade and logistics.

The ministry estimated that budget deficit might widen by 1.5-1.6 per cent of GDP to 5-5.1 per cent GDP this year.

Đặng Ngọc Minh, deputy director of the General Department of Taxation, said that focus would be placed on hastening reforms to create favourable conditions for taxpayers and improve the business climate which would promote production and business.

Inspection would be enhanced to prevent tax evasion, Minh said. In addition, the management of e-commerce would be improved to increase tax collection.  VNS

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