31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Dec 07, 2020 / 15:27

Vietnam tax revenue passes 1,000 trillion-mark in 11-month period

Budget revenue, however, remains short of VND100 trillion (US$4.31 billion) to meet the year’s target with one month to go.

Vietnam’s tax revenue collection in the first 11 months of 2020 reached VND1,083 trillion (US$46.7 billion), equivalent to 86.4% of the year’s estimate and down 4.1% year-on-year, according to the General Department of Taxation (GDT).

 Tax refund at Hanoi's Department of Taxation. Photo: Hai Linh. 

“Positive economic recovery has directly led to improvements in state budget collection, thanks to Vietnam’s effective measures against the Covid-19 pandemic and the EU – Vietnam Free Trade Agreement,” said GDT Director Cao Tuan Anh at a recent meeting, referring to a 11.9% year-on-year expansion in Vietnam’s industrial production in November and a record high trade surplus of US$20.1 billion in the January-November period.

Budget revenue, however, remains short of VND100 trillion (US$4.31 billion) to meet the year’s target with one month to go, which is “a challenging task amid the complicated Covid-19 situation globally,” stated Mr. Tuan Anh. 

Upon breaking down, revenue from crude oil was estimated at VND31.5 trillion (US$1.35 billion), or 89.5% of the estimate and down 38.9%, while domestic revenue declined by 6.3% year-on-year to VND805.06 trillion (US$34.71 billion), or 79.1% of the estimate.

Other key sources of budget revenue included land rental fees at VND131.08 trillion (US$5.65 billion), or 136.7% of the estimate and up 6.1% year-on-year, dividends and profit of VND69 trillion (US$2.97 billion), or 105.3% of the estimate and up 41.6%.

In the 11-month period, tax authorities recovered VND25.52 trillion (US$1.1 billion) in tax arrears, up 7.1% year-on-year. 

As the economy is still struggling with the Covid-19 impacts, Mr. Tuan Anh expected the tax authorities to look at supporting policies for the business community in forms of the delay of payment of taxes and land rental fees.

“The GDT is finalizing a strategy for tax reform until 2030 to create more convenience for individuals and organization in tax payment,” Mr. Tuan Anh noted.

Minister of Finance Dinh Tien Dung in a previous meeting said Vietnam’s budget deficit this year is estimated at VND319.5 – 328 trillion (US$13.78 – 14.15 billion), equivalent to 4.99-5.59% of GDP, significantly higher than the 3.44%-of-GDP target set in early 2020.

For the next year, Vietnam’s state budget revenue is estimated at VND1,343 trillion (US$58 billion) and expenditure of VND1,687 trillion (US$72.78 billion), resulting in a fiscal deficit of VND343.67 trillion (US$14.82 billion) for 2021.