Domestic revenue increased compared to the same period, reflecting the impact of economic recovery. Photo: Internet

According to the Ministry of Finance, total state budget revenue in May 2024 is estimated to reach VND 150.9 trillion, equal to 8.9 percent of the estimate, equal to 80.8 percent of the average monthly revenue of the first four months of the year.

Of which, domestic revenue is estimated at VND118.4 trillion, equal to 8.2 percent of the estimate, equal to 74.1 percent of the average monthly revenue of the first four months of the year.

Revenue from crude oil is estimated at VND5 trillion, equal to 10.9 percent of the estimate, equal to 101.6 percent of the average monthly revenue of the first four months of the year.

Budget balance revenue from import and export activities is estimated at VND27.5 trillion, based on total tax revenue estimated at VND37.9 trillion, equal to 10.1 percent of the estimate and 119.6 percent of the average monthly revenue of the first four months of the year; Value added tax (VAT) refund in the month is estimated at about VND10.4 trillion.

In order to continue to support businesses in overcoming difficulties, in May, the Ministry of Finance submitted to the Government and the National Assembly a report on the results of implementing the policy of reducing the value added tax rate by 2 percent according to the Resolution. No. 110/2023/QH15 dated November 29, 2023 of the National Assembly.

It is recommended to continue implementing the policy of reducing the value-added tax rate by 2 percent for a number of groups of goods and services that are applying the 10 percent value-added tax rate in the last six months of 2024 (projected expected to reduce state budget revenue by about VND24 trillion).

At the same time, the Ministry of Finance has asked the Ministry of Justice about the appraised contents. Based on that, the Ministry is receiving and finalizing and submitting to the Government for consideration and promulgation of Decrees on extension of value added tax, corporate income tax, personal income tax and land rent in 2024 (with an expected scale of about VND84 trillion); extend special consumption tax on domestically produced and assembled cars in 2024 (with an expected scale of about VND8.56 trillion).

In addition, the Ministry of Finance is asking for opinions from ministries, branches and localities to report to the Prime Minister and the Government on registration fee rates for domestically produced and assembled cars.

During the month, the Tax and Customs authorities continued to implement policies to exempt and reduce taxes, fees and charges issued to support businesses and people. The total amount of money exempted and reduced is estimated to be about VND 38.9 trillion by the end of May.

At the same time, strengthen revenue management and tax inspection, review revenue sources, prevent revenue loss, especially real estate business activities, review tax calculation prices close to market prices; financial services, banking, restaurants, hotels, e-commerce, and cross-border digital business activities; strictly inspect and control value-added tax refund work to ensure tax refund in accordance with the law.

Focus on promoting digital transformation, modernizing tax collection, expanding the implementation of electronic invoices. Of which, so far all 15,935 petroleum retail stores nationwide have issued electronic invoices for each sale, and 18,705 food service establishments have issued electronic invoice issuance initiated from cash registers.

In addition, the Tax agency continues to coordinate with the Ministry of Public Security to promote the standardization of citizen identification codes as tax codes, creating an important foundation to deploy online public services to serve people and businesses, contributing to promoting the development of digital government, digital economy, digital society...

The Ministry of Finance also said that accumulated state budget revenue in the first five months of 2024 is estimated to reach VND 898.4 trillion, equal to 52.8 percent of the estimate, up 14.8 percent compared to the same period in 2023 (central budget revenue is estimated at about 56.5 percent of the estimate; local budget revenue is at about 49.1 percent of the estimate). Of which, domestic revenue is estimated at VND757.5 trillion, equal to 52.4 percent of the estimate, up 16.8 percent compared to the same period in 2023.

Also in five months, revenue from crude oil is estimated to reach VND 24.7 trillion, equal to 53.6 percent of the estimate, down by 5.5 percent compared to the same period in 2023. The average payment price of oil in five months is about US$88 per barrel (an increase of US$18 per barrel compared to the estimates, approximately the average price in the same period in 2023); the paid crude oil output reached about 3.4 million tons, equal to 41 percent of the plan.

At the same time, the balance revenue from import-export activities in the first five months of the year is estimated to reach nearly VND116.2 trillion, equal to 57 percent of the estimate, up 7.8 percent compared to the same period in 2023, based on total tax revenue estimated at VND164.7 trillion, equal to 43.9 percent of the estimate, up 6.8 percent compared to the same period, value added tax refund according to the regime is about VND48.5 trillion, equal to 28.4 percent of the estimate.

According to analysis by the Ministry of Finance, among domestic revenues in the first five months of the year, revenues from houses and land are estimated at VND90.6 trillion, equal to 35.2 percent of the estimate, an increase of 78.2 percent compared to the same period last year.

The increase in revenue is mainly due to the fact that localities have well organized land auctions and allocated land to projects from the end of 2023, generating land use fee payments in early 2024, some localities collect one-time land rent for some projects.

Dividend collection, profits, profit after tax, and the difference between revenue and expenditure of the State Bank are estimated to reach 73 percent of the estimate, up 0.5 percent compared to the same period, mainly thanks to the increase in revenue and the difference between revenues and expenditures of the State Bank (over VND31.8 trillion has been paid to the state budget, reaching 175 percent of the estimate of VND18.2 trillion).

Recovery of state budget capital invested in economic organizations is estimated at VND14.7 trillion, equal to 368.3 percent of the estimate, mainly increasing capital recovery from local enterprises equitized from previous years.

The remaining domestic revenues are estimated at VND580.2 trillion, equal to 53.5 percent of the estimate, up 11.7 percent compared to the same period in 2023 (excluding land use fees, revenues from lottery activities, dividends, profits, after-tax profits, the difference in revenue and expenditure of the State Bank and recovery of state budget capital invested in organizations economic office).

In five months, revenue from three production and business areas (accounting for 50.9 percent of the domestic revenue estimate) is estimated to reach 54.1 percent of the estimate, an increase of 12.7 percent compared to the same period in 2023, mainly due to businesses have temporarily paid 3/5 corporate income tax periods in 2024 (including quarter 4/2023, settlement period 2023, quarter 1/2024); personal income tax collection is estimated to reach 55 percent of the estimate, up 13.9 percent; environmental protection tax collection is estimated to reach 43.6 percent of the estimate, an increase of 20.3 percent.

According to the Ministry of Finance, domestic revenue achieved quite well compared to estimates and increased compared to the same period, reflecting the impact of economic recovery (growth in the first quarter of 2024 reached 5.66 percent, the same period in 2023 reached 3.41 percent).