Illustrative image (Photo: VNA) Hanoi (VNA) - It is unlikely that State budget revenue will reach the 2020target approved by the National Assembly of over 1.51 quadrillion VND (64.89billion USD) due to the impact of COVID-19, Minister of Finance Dinh Tien Dunghas said.
Vietnamhas seen significant declines in State budget revenue since the beginning of theyear as a result of business and production stagnation, while the State budgetis funding a number of relief packages to recover industries and businesses.
Accordingto the General Statistics Office, as of June 15 State budget revenue totalled607.1 trillion VND, equivalent to 40.1 percent of the annual target. The figureincluded 503.8 trillion VND in domestic collection and 20.2 trillion VND fromcrude oil, equal to 39.9 percent and 57.5 percent of targets, respectively.
Thisyear’s State budget revenue will fall because of low economic growth, plungingoil prices and, in particular, tax cuts introduced to ease the burden on enterprisesand household businesses from the outbreak, Dung said.
Many companieshave scaled down production in the face of weakening demand and disruptions to supplychains, putting enormous pressure on the State budget, he explained.
TheMinistry of Finance has proposed the Government waive or cut taxes and fees tosupport those affected by COVID-19, worth a total of about 200 trillion VND, hecontinued, citing a five-month extension for the payment of taxes and land usefees as an example of such measures.
Theministry also suggested providing tax exemptions on imported medical materialsand equipment for the COVID-19 response and imports of materials for variousindustries, including footwear, textiles and garments, processing ofagriculture, forestry and fishery products, mechanical engineering, supportindustries, and automobiles, he added.
Dung furthernoted that the ministry has put extra effort into restructuring State budgetrevenues, with the proportion of domestic collections expanding from around68.7 percent of the total during the 2011-2015 period to 81.5 percent in 2016-2020.
Theministry is set to raise domestic collections to 84 percent of the total thisyear, he said./.
Vietnamhas seen significant declines in State budget revenue since the beginning of theyear as a result of business and production stagnation, while the State budgetis funding a number of relief packages to recover industries and businesses.
Accordingto the General Statistics Office, as of June 15 State budget revenue totalled607.1 trillion VND, equivalent to 40.1 percent of the annual target. The figureincluded 503.8 trillion VND in domestic collection and 20.2 trillion VND fromcrude oil, equal to 39.9 percent and 57.5 percent of targets, respectively.
Thisyear’s State budget revenue will fall because of low economic growth, plungingoil prices and, in particular, tax cuts introduced to ease the burden on enterprisesand household businesses from the outbreak, Dung said.
Many companieshave scaled down production in the face of weakening demand and disruptions to supplychains, putting enormous pressure on the State budget, he explained.
TheMinistry of Finance has proposed the Government waive or cut taxes and fees tosupport those affected by COVID-19, worth a total of about 200 trillion VND, hecontinued, citing a five-month extension for the payment of taxes and land usefees as an example of such measures.
Theministry also suggested providing tax exemptions on imported medical materialsand equipment for the COVID-19 response and imports of materials for variousindustries, including footwear, textiles and garments, processing ofagriculture, forestry and fishery products, mechanical engineering, supportindustries, and automobiles, he added.
Dung furthernoted that the ministry has put extra effort into restructuring State budgetrevenues, with the proportion of domestic collections expanding from around68.7 percent of the total during the 2011-2015 period to 81.5 percent in 2016-2020.
Theministry is set to raise domestic collections to 84 percent of the total thisyear, he said./.
VNA
