Lacking money, MOF attempts to raise fees
20-04-2015 14:08:39+07:00
Lacking money, MOF attempts to raise fees
The anticipated loss of revenue of the state budget in 2015 has put pressure on the Ministry of Finance (MOF), which plans to impose higher fees to offset losses.
MOF has decided to raise the environmental fee on petroleum products sharply by 300 percent.
Petroleum distributors have threatened that they would have to raise retail prices as the higher environmental fee has led to higher production costs.
As a result, Vietnamese still pay high prices for petrol, despite the sharp fall of crude oil and petrol prices in the world market.
Some days ago, the ministry released a decision on collecting up to VND5 million a month from every 400-foot container transported on the Phap Van – Ninh Binh short section of road (20 kilometers).
Since April 8, the new fee levels of VND15,000-120,000 per vehicle have been applied to those using Dong Nai Bridge.
A local newspaper reported that every vehicle in circulation in Vietnam bears 10 different kinds of fees.
Le Dang Doanh, a renowned economist, said that raising fees and charges was one of the measures taken by MOF in an effort to offset the loss of revenue for the state budget in 2015.
The loss of revenue is anticipated by MOF, which points out that the crude oil price fall alone would lead to the loss of VND13 trillion of revenue.
Besides, the official membership of AEC (ASEAN Economic Community) from 2015 will also lead to a decrease in tax collection, because AEC-sourced imports will not bear import taxes.
“With receipt and expense estimates, one can see that no dong from the state budget will be spent on investments. We will have to borrow money for investments. This explains why state agencies are thinking of raising fees,” Doanh said.
Pham Chi Lan, also a renowned economist, has expressed her worries about the possible consequences to be caused by the decisions on raising fees and charges.
“The increases in fees and charges will lead to higher production costs,” Lan said. “If so, Vietnam can no longer maintain its advantage as a country with low production costs as thought by foreign investors.”
Lan said that 80 percent of cities and provinces have budget revenue lower than their expenditures. The investment for development in these localities have been heavily dependent on money from the state budget.
Lan said she fears that the 80 percent of localities may set new kinds of fees and raise existing fees to offset the local budget’s loss of revenue. If so, this would create a burden on local businesses and residents.
