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PIT revenue equal to crude oil revenue

Released at: 11:18, 27/10/2015

PIT revenue equal to crude oil revenue

Deputy Minister of Finance releases revenue estimates for the year as a whole.

by Quynh Nguyen - Nhat Binh

Revenues from personal income tax in 2015 are estimated at VND55 trillion ($2.4 billion), the highest highest level to date, Deputy Minister of Finance Do Hoang Anh Tuan told a press conference on October 26. The figure is almost equal to crude oil revenues for the year, which are expected at around VND60 trillion ($2.7 billion).

Mr. Tuan also said that total budget revenues for the year will exceed estimates by VND17.4 trillion ($783 million), with State budget revenues falling VND31 trillion ($1.39 billion) but local budget revenues increasing VND47 trillion ($2.11 billion).

The decline in State budget revenue is due to crude oil prices slipping below $100 per barrel, while Vietnam also adjusted import taxes on many items.

The government has proposed using VND10 trillion ($450 million) from divestment sources to offset the losses and balance the State budget. “Tax liabilities of enterprises reached VND76 trillion ($3.42 billion),” Mr. Tuan said. “The Ministry is focusing on handling outstanding tax liabilities of VND34 trillion ($1.53 billion) from a number of enterprises.

Vietnam currently has 506,000 enterprises paying taxes on time. In the first nine months tax collections stood at VND5 trillion ($225 million).

Not all pay on time, however. Deputy Minister Tuan used Vietsovpetro, the first joint venture between Vietnam and a foreign country (Russia) in the field of oil and gas exploration and production, as an example. Last year its tax bill was $86 million, which is still to be paid to the State budget.

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