Tax revenues up despite hit to crude oil revenues

The country’s tax revenues in the first five months of this year continued to grow despite reduction in tax collection from crude oil, according to the General Department of Taxation.

During this period, domestic tax collections were estimated to total VND283.2 trillion (US$13 billion), representing an increase of 16.3 per cent over the same period last year, including VND42.4 trillion ($1.94 billion) in May.

Taxes from crude oil, however, dropped by 34 per cent against the same period to VND30.3 trillion ($1.39 billion), reaching only 32.6 per cent of the target for the full year.

Meanwhile, in the first five months, tax collection from other export and import activities gained a year-on-year surge of 6.5 per cent to VND66 trillion ($3.03 billion).

According to the Ministry of Finance, the domestic economy has reacted positively recently, but the economy is still faced with difficulties that could affect tax collections.

Therefore, the ministry would track the economic development in the near future to manage tax collection activities for reaching the yearly target.

The ministry would also implement solutions to increase tax revenues and prevent individuals and corporates from evading taxes.

The General Department of Taxation is also required in June to implement measures to collect more tax revenues and promote inspection of tax payment and after customs clearance.

The department will implement solutions against pricing transfers and tax arrears.

The tax revenues are expected to reach VND167.6 trillion ($7.7 billion) in the second quarter and VND345.9 trillion in the first half of this year, the ministry said.

The tax sector planned to collect VND731.6 trillion ($33.56 billion) this year, of which VND93 trillion ($4.27 billion) would be from crude oil.