Posted on 19 Jun 2015
HCMC’s tax collections in the year’s first half are estimated to rise to VND46.5 trillion, with completely built-up auto imports contributing a major part.
The HCMC Customs Department put imports of under-nine-seat CBU autos in January-June at US$330 million, up a staggering 200% against a year ago. This strong increase contributes an additional VND5 trillion to the city’s tax revenue in the period.
HCMC is one of the localities with high CBU auto imports. Imported autos are currently subject to import duty, special consumption tax, value-added tax (VAT) and registration fee.
Besides, the higher tax revenue in the city in the period is credited to more tax collections from steel, apparel, footwear, computers and components. For example, steel imports have gone up by around US$60 million year-on-year, resulting in a tax increase of some VND300 billion.
Fuel imports have seen a decline of 20% as the world oil price has dropped significantly. However, tax and fee collections from fuels remain stable as their environmental protection fees have tripled for certain products since May 1.
The department said of the VND46.5 trillion, export and import tax collections account for VND19 trillion and VAT VND27.5 trillion. The total figure represents nearly 52% of the whole year’s target.
However, the city has seen tax collections in some areas shrinking. The VAT exemption of imported fertilizers, animal feed and materials, agricultural machines and tools, and offshore fishing boats since the beginning of this year has led to a loss of some VND1.6 trillion.
In addition, budget collections will lose approximately VND1 trillion as Vietnam is lowering import tariffs to fulfill its commitments to the free trade agreements with other countries.
This year, the Customs Law allows enterprises to conduct export and import procedures at any customs offices. Therefore, HCMC cannot collect taxes for the goods which are imported via ports in HCMC but importers register for customs clearance in other localities.
