Fluctuations at the start of 2020
According to Hanoi Customs Department, in the first six months of 2020 (as of May 15), the number of revenue collection is VND 7,476 billion, reaching 32.1% of current appropriation, equivalent to 95% over the same period in 2019. Only in Hanoi, collecting VND 5,960 billion, reaching 32.4% of current appropriation, 98% over the same period in 2019. The results were gloomy compared to the same period last year due to many factors, mostly from the Covid-19 pandemic, leading to fluctuations of import-export enterprises.
Analysing revenue collection in the first months of the year, Hanoi Customs Department said 10 large enterprises of customs branches in Hanoi decreased by 6.67% over the same period of 2019, including North Hanoi Customs Branch. In the first few months of the year, large enterprises decreased sharply, by 67.35% over the same period in 2019. The decrease in revenue collection is due to the fact that some large projects completed procedures at the unit and at the same time due to the impact of Decree 100/2019/ND-CP, many businesses reduced imports of wine and beer. In contrast, for Gia Thuy Customs Branch, revenues collected from large businesses were also affected by the impact of aviation. At the North Thang Long Industrial Park Customs Branch, the tax of large enterprises in the first months of the year was only 92% from the same period. Due to the impact of the pandemic in China, South Korea, and Japan, the import of raw materials for manufacturing of enterprises in industrial zones was affected.
Among units in Hanoi, only the Investment and Processing Customs Branch recorded an increase in revenue collection in the first months of the year, up 137% over the same period. The reason was Hinor Company increasing imports to meet the preferential tax conditions for automotive components in accordance with Decree 125/2017/ND-CP and at the same time, the Nam Son Waste Power Project continues to be implemented.
Not only that, in the first months of 2020, units of Hanoi Customs Department also faced fluctuation of enterprises doing customs procedures. In the first four months of the year, in Hanoi, there were 26 enterprises paying more than VND 5 billion without araising tax to the State budget in 2019, of that 10 enterprises did not incur customs procedures in the whole country. In Vinh Phuc, there are 15 enterprises paying more than 1 billion VND to the State budget without araising tax, of that seven enterprises did not incur customs procedures in the whole country.
Similarly, the change of enterprises implementing customs procedures also happened in Phu Tho area. In this area, there are nine enterprises paying more than VND 1 billion in 2019, but by the end of April, there was no tax paying to the State budget. Among nine enterprises, three did not incur customs procedures in the whole country.
However, in the past few months, it also recorded positive signs when several new enterprises have completed customs procedures and contributing taxes to the State budget. For example, in Hanoi, there were 27 new enterprises contributing the amount of more than VND 1 billion paid to the procedures, including 11 new enterprises that did not incur customs procedures in the whole country in 2019. In Phu Tho area, there are three new businesses that have contributed tax of VND 12.3 billion.
Deploying synchronously solutions for raising revenue collection
Calculating the situation in the last six months, the Hanoi Customs Department said that it is expected that revenue will recover as before the outbreak of pandemic. Revenue collected from post-clearance audits in 2020 will decrease as a result of periodic inspections. In particular, Toyota Vietnam announced its plan of importing automobile components in 2020 would be only 65% of 2019 and in the first four months of the year, the company imported 50% of goods according to the annual plan, resulting in a decrease in revenue collection of Vinh Phuc local by about VND 600 billion compared to 2019.
In the opposite direction, Hanoi Customs Department hoped public investment projects in the city would be focused on speeding up and disbursing, along with that, the trend of shifting investment of large enterprises, corporations of Japan, South Korea and US from China and other countries to Hanoi is increased. This would be a positive signal in revenue collection of Hanoi Customs.
To complete the task of State revenue collection at the highest level, Hanoi Customs Department has continued focusing on administrative procedure reform, creating the most favourable conditions for enterprises such as increasing receiving and inspection dossiers and feedback to businesses via the automatic clearance system 24/7; effectively deploy the national aviation single window system and automatic management and supervision system in Noi Bai. Developing a plan, coordinating with related departments and authorities to implement directives of the Hanoi City People’s Committee to facilitate import and export activities and guide new businesses and projects in the area about implementing customs procedures at the department.
To combat loss of State revenue, the unit strengthened the management of anti-revenue loss through HS code, price, quantity and origin. At the same time, continuing to coordinate with competent forces to fight smuggling and trade fraud, especially to prevent businesses from taking advantage of the pandemic to smuggle and trade fraud.
By N.Linh/Thanh Thuy
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