Sinking production is biting into state
budget revenue.
Just
VND55,490 billion ($264 million) was paid to state coffers during last month,
dropping VND3,450 billion ($164 million) against 2012’s first four months’
average level, according to the Ministry of Finance (MoF).
Total
contributions to the state amounted to VND291,253 billion ($13.8 billion) in
the first five months of 2012, tantamount to 39.3 per cent of the projection,
surging 3 per cent on-year - the lowest year-on-year growth in the past couple
of years.
Meanwhile,
budget spending came to VND73,945 billion ($352 million) in May, bringing total
budget spending to VND338,021 billion ($16.1 billion) in the first five months
of 2012, equal to 37.4 per cent of the projection and a 10.8 per cent jump
on-year.
This
contributed to driving up budget overspending during January-May to VND46,768
billion ($222 million) with VND18,455 billion ($87.8 million) in May alone
which was 2.6 fold more than first four month average overspending.
The MoF
attributed the shortfall to dragging economic vulnerabilities, implications of
state policies on tax reduction, exemption and extension to help firms weather
the storm and support market in the spirit of Resolution 13/NQ-CP, import duty
cuts to match international commitments and a sharp fall in the import value.
Besides,
a General Department of Customs report showed that Vietnam’s January-May total
export-import value was an estimated $86.3 billion, hiking 14.6 per cent
against 2011’s same period ($11.02 billion more). Of this, exports amounted to
$42.8 billion and import $43.4 billion, resulting in a $620 million trade
deficit.
Falling
exports of crude oil, coal and sinking import of petroleum products, automobile
and spare parts hurt customs’ budget revenue in the first five months of 2012
which shed 10 per cent on-year (VND8,656 billion or $412 million less),
reaching VND77,800 billion ($3.7 billion), tantamount to 34.7 per cent of the
projection.
National
Assembly’s Economic Committee official Tran Du Lich said: “Thereby, besides tax
exemption, reduction and extension pursuant to Resolution 13, more incentives
need to be in place to fuel production, paving the way for fulfilling budget
revenue targets in remaining months of 2012.”
On June
12, the MoF will submit to the National Assembly a draft resolution on tax
measures to assist firms and individuals in 2012, including 30 per cent
corporate income tax reduction proposal to small- and medium-sized and labour
intensive firms in some areas.
Lich
viewed these measures as necessary, but not sufficient.
National
Financial Supervisory Commission chairman Vu Viet Ngoan assumed boosting
domestic production through supporting firms to withstand current tough period
was one of factors to ensure budget revenue.
“Apart
from delaying and easing tax obligations of firms, the government should come
up with measures to help firms boost sales. Only in doing so, contribution to
state coffers will be stable in a sustainable manner,” said Ngoan.
Nam
Kinh | vir.com.vn
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