Illustrative image (Source: VNA)The departmentsaid the falling crude oil price is one of reasons behind the reduced taxrevenues, as the yearly plan was based on the assumption that oil price was 60USD per barrel.
Besides, theenforcement of several free trade agreements brought down the tax rates onpetrol imports from ASEAN and the Republic of Korea, cutting into taxcollection.
Lower-than-expectedeconomic and export growth rates are other causes.
As more taxeswill be reduced to zero in 2017 and the years after, revenues fromimport-export tariffs and special consumption taxes are expected to dropfurther, prompting the sector to look to other sources such as environmenttaxes and value added tax (VAT).
Le Manh Hung, deputyhead of the department’s Import-Export Tax Department, said the VAT rates,which stand at 5 and 10 percent at the moment, are relatively low in comparisonwith that in other countries in the region.
He pointed tothe need to change the structure of tax collection sources in order to ensurerevenues for the State budget.
The customssector’s revenue mainly comes from import-export tax, special consumption tax,environmental protection tax and VAT.
The sector wasassigned to collect 270 trillion VND for the State budget in 2016, with 91trillion VND to come from import-export tax, special consumption tax andenvironmental protection tax, and 179 trillion VND from VAT.-VNA
VNA
