State budget revenue declines amid COVID-19 battle
State budget revenue in March is estimated at VND89 trillion (US$3.82 billion), equivalent to 7.1 per cent of the ordinance estimate and down 2.2 per cent from the same period last year, data of the General Department of Taxation (GDT) revealed.
A sharp reduction in crude oil revenue, which was just 70.6 per cent of March 2019’s figure, was behind the coffer’s declining revenue.
Domestic revenues dropped 0.4 per cent while revenues excluding land-use fees, dividends and remaining profit, lottery revenue and revenue from the difference between revenue and expenditure of the State Bank of Viet Nam also decreased 3.7 per cent.
Ending March, the tax sector’s accumulated revenues are expected to reach more than VND339 trillion ($14.6 billion), equalling 27 per cent of the ordinance estimate and up 10.9 per cent year-on-year.
According to the taxation authority, strong economic development in the last quarter of 2019 largely contributed to the positive revenue result in the first quarter this year. However, budget collection is showing signs of decreasing due to the rapid development of the COVID-19 outbreak.
Some major sources of revenues have declined sharply, such as VAT (value added tax) shrinking 4.5 per cent in March compared to 8 per cent growth in the fourth quarter of 2019 and 4.7 per cent rise in the first two months; special consumption tax, down 4.6 per cent in the first quarter compared to 9.5 per cent rise in previous three months; and corporate income tax, down from 17 per cent in the first two months to 14 per cent ending March.
In the first three months, the country had 30,227 newly established enterprises, an increase of 6.08 per cent year-on-year, but the number of companies terminating business increased 10.2 per cent and temporarily halting business up to more than 8 per cent.
Ending March, there were 766,512 businesses nationwide, up just 1.2 per cent compared to the end of 2019.
Tax agencies at all levels have conducted 7,056 inspections, handling total value of tax debts and fines of VND15.56 trillion, almost double the same period of 2019.
As COVID-19 continues affecting business activities, the tax authority has instructed people and businesses to declare tax online and increased online support through email, Facebook and YouTube, informing taxpayers the latest information about the extension of tax payments.
GDT has also reviewed and advised the Ministry of Finance on a support package for companies on tax and land rent worth more than VND80 trillion.