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| Financial – budget briefing conference in October, implementation of financial – budget tasks in November 2022. |
Budget revenue decreases
In the first 10 months of 2022, state budget revenue is estimated at 1,464.3 trillion VND, equaling 103.7% of the estimate (the central budget is estimated at 103.6% of the estimate; the local budget is estimated at 103.8% of the estimate), an increase of 16.2% compared to the same period in 2021. However, according to the assessment, although budget revenue increases over the same period, it is on a downward trend. In the first 10 months of 2022, domestic revenue is estimated at 1,157.7 trillion VND, equaling 98.4% of the estimate, up 12.1% over the same period in 2021. If calculated in October alone, domestic revenue was estimated at 110.1 trillion VND, an increase of about 37.1 trillion VND compared to the previous month. This increase is mainly due to the number of revenues allowed by the regime to be collected quarterly such as corporate income tax, personal income tax and VAT of business households, profit after tax, the difference between state budget revenues and expenditures, etc., arising in the third quarter of 2022, enterprises that have declared and paid in October and collected taxes and land rents into the state budget have expired according to Decree No. 34/2022/ND-CP dated May 28, 2022, of the Government. However, the Ministry of Finance said excluding these revenue increases, the domestic revenue in October continued to have a downward trend because of several industries and fields of production and business activities. The consumption market still has many difficulties; input costs, and transportation costs have increased due to the influence of gasoline prices, input materials, interest rates, exchange rates, and global economic decline.
According to the Ministry of Finance, the average domestic revenue in the year’s first five months reached 130.8 trillion dong/month. Since June, the average revenue has only reached nearly 100 trillion VND, of which the September collection is only 71.2 trillion VND trillion; in October, excluding the quarterly declared and paid revenues, the revenue was only about 70 trillion VND. In addition, some industries have reduced revenue, such as: oil and gas, steel production, cement, construction materials, construction industry, textile, etc; because output prices are on a downward trend; automobiles decreased because the demand stimulus policy expired from May 2022; securities, real estate due to market decline; banks due to pressure to increase interest rates, exchange rates and policies to control credit growth to stabilize inflation.
Within 10 months, excluding land use levy, lottery collection, capital recovery, dividends, dividend recovery, profit, profit after tax and the difference between revenues and expenditures of the State Bank, tax revenues and domestic costs reached 96.3% of the estimate, up 7.2% over the same period. Besides 6 revenues exceeding the estimate, there are still 2 revenues that have not yet met the estimated schedule: environmental protection tax and capital recovery, dividend recovery, profit, profit after tax and the difference between revenues and expenditures of the State Bank. For direct revenues from production and business activities in 3 economic sectors (State enterprises, FDI enterprises and private enterprises), the revenue from 2 main taxes accounting for a large proportion of total revenue in the 3 economic sectors, although still ensuring the estimated revenue and growth over the same period, has been on a downward trend in recent months as VAT is estimated at 85.3% of the estimate, up 11.7% and Profit tax reached 91.4% of the estimate, down 14.3% over the same period in 2021.
Actively review revenues, strengthen anti-loss
At the October briefing conference on financial and budgetary work, implementing the financial and budgetary tasks in November 2022 of the Ministry of Finance held on November 3, Deputy Director General of the General Department of Taxation Phi Van Tuan said, for domestic revenue, the ability to collect the state budget in 2022 is completed. The General Department of Taxation will continue to work with units to ensure budget collection in 2022. Regarding tax debt, Mr Phi Van Tuan said the debt has increased. The reason comes from the difficulties of enterprises. Although the economy is initially stable, many small and medium enterprises are still in a difficult situation, even FDI enterprises. However, after September 2022, the tax debt initially decreased because the General Department of Taxation implemented solutions in debt management. Regarding the implementation of support packages for businesses facing difficulties due to the Covid-19 epidemic, the total number of extensions, exemptions and reductions is estimated at about 160.3 trillion VND by the end of October.
As for budget revenue from import-export activities, data from the Ministry of Finance show that the customs sector’s budget revenue in October 2022 is estimated at nearly 14 trillion VND based on the total tax revenue of nearly 32.1 trillion VND, down about 500 billion VND from last month; VAT refund under the regime is about 18.1 trillion VND. In the first 10 months of 2022, import-export tax collection is estimated at nearly 236.1 trillion VND, equaling 118.6% of the estimate, up 21.9% over the same period in 2021 based on the total estimated tax revenue of 362 trillion VND, equaling 102.8% of the estimate; VAT refund under the regime of 125.9 trillion VND, equaling 82.3% of the estimate. According to the General Director of Customs Nguyen Van Can, the customs sector’s budget revenue by the end of October exceeded the plan, and tax refund reached 82% of the estimate, in line with the reality of the total revenue of 10 months of the General Department of Customs. Customs Department. “Currently, we are actively reviewing revenues, strengthening against revenue loss so that in the remaining two months, we will exceed the target set by the Ministry of Finance,” said Mr Nguyen Van Can.
 | Minister of Finance works with Quang Binh on performance of financial – budget task |
Directing the key work in the last two months of 2022 and 2023, at the briefing conference, Deputy Minister of Finance Ta Anh Tuan said that the state budget revenue and expenditure situation in the 10 months of 2022 has been completed. The central and local budgets are included, although there are still 2 difficult provinces. However, the Deputy Minister noted that in 2023, there are many signs of difficulties and challenges. Certainly, the state budget revenue and expenditure will also be difficult. Hence, units, especially those in the revenue sector, including the State Budget Department, Taxation, Customs and State Treasury, need to coordinate harmoniously and reasonably to fulfil the task of budget collection in 2022 and have room to complete the task in 2023.