The Ministry of Finance will focus on improving the business climate and creating favourable conditions for businesses to accelerate growth, which is important to ensure State budget revenue amid the COVID-19 pandemic's impacts on socio-economic development.

The Thuan Duc Packaging Joint Stock Company in Hung Yen province.
(Photo:VNA)

Experts predicted that the pressure of the pandemic on budget revenue would continue in the remaining quarters of this year.

Latest updates by the Ministry of Finance showed that the State budget revenue totalled VND391 trillion (over US$16.6 billion) in the first quarter of 2020, equivalent to 25.9% of the yearly estimate and up 1.8% year-on-year.

Domestic revenue, estimated at VND324.7 trillion (over US$13.8 billion), rose by 3.6% from the same period last year. The figure was equal to 25.7% of the estimate.

Revenue from crude oil rose 7.3% to reach nearly VND14.6 trillion, or 41.4% of the plan for the full year despite the plunging oil prices in the global market, even to US$25-27 per barrel.

The ministry said that a large number of businesses, especially those operating in aviation, tourism, hospitality, restaurant and catering services, have to scale down their business because of difficulties caused by the epidemic.

Meanwhile, State budget revenue from import-export activities dropped 8.8% against the same period last year to only nearly VND77 trillion (US$3.2 billion), or nearly 22.8% of the estimate.

According to Vice Director of the General Department of Vietnam Customs Luu Manh Tuong, the decline in import-export tax revenue is mainly due to impacts caused by the COVID-19 pandemic, which has led to a sharp drop in revenue of major export-import items, including automobile, equipment and spare parts, computers and electronic products, and iron and steel.

The customs sector has taken many solutions to promote cross-border export-import, and created favourable condition for enterprises’ production, Tuong said. 

Nguyen Thi Cuc, Chairwoman of the Vietnam Tax Consultancy Association, said that to complete budget revenue target, it is necessary to urge enterprises to come up with solutions to difficulties, aiming to maintaining their production and business. 

Meanwhile Nguyen Duc Huy, from the General Department of Taxation said  to offset the damage caused by COVID-19, the General Department of Taxation will implement urgent measures to support affected taxpayers.

Recently, the Government gave a five-month extension of deadlines for tax and land use fee payments to support businesses suffering from the COVID-19 pandemic, which was estimated to total VND180 trillion and benefited 98% of firms in the country.