State budget revenue drops despite import-export growth

Imports and exports in the first three months totaled US$58.8 billion, up 18.3% over the same period last year. Meanwhile, the State budget revenue from import-export reached VND41.15 trillion, equal to 17.3% of the estimate, a drop of over VND3.4 trillion, or 7.7%, year-on-year.

After VND14 trillion worth of value added tax was refunded, the State budget revenue from import-export in the first quarter stood at VND27.15 trillion, or 16.2% of the estimate, down 10.7% year-on-year.

This is ascribed to the sharp decline in trade of thosee items subject to high tariffs such as automobiles, said the finance ministry.

In addition, under Vietnam’s commitments in free trade agreements, import duties on a number of products will be gradually lowered.

Therefore, the customs authority has introduced several measures, including raising export taxes on coal and apatite and import taxes on gold, flavorings and chemicals for beverage production.