Businesses pay trillion VND of import and export taxes in Ho Chi Minh City

Over 49,000 businesses importing and exporting goods across border gates in Ho Chi Minh City contributed over 108,000 trillion VND to the State budget in 2018, of which more than a dozen businesses paid import and export taxes up to trillion VND.  

businesses pay trillion vnd of import and export taxes in ho chi minh city
Automobile importers topped the list on tax payment. Photo: T.H

Automobile and petroleum product importers topped the list

According to Ho Chi Minh City People's Committee, the socio-economic situation in 2018 took place in the context of positive global economic growth, increased world oil prices, less volatile financial and monetary markets; stable domestic macroeconomy... However, the city still faces a number of challenges, such as reduced import and export revenues due to the commitment of free trade agreements to reduce thousands of tariff lines to 0 %, the traffic congestion and flooding still continuously took place and the climate change was getting more complicated which partly affected the production and business results of businesses in the City.

With the great efforts in overcoming difficulties and proactive and creative spirit, many businesses effectively maintained their production and business, contributing great revenue to the State budget. Among more than 49,000 import and export businesses in Ho Chi Minh City that contributed over VND 108,000 billion to the State budget in 2018, 200 businesses had total import turnover of up to US$ 23.9 billion, accounting for 42 % of total import turnover; and contributed VND 60,140 billion to the State budget, accounting for 55.5% of the total revenue of Ho Chi Minh City Customs Department in 2018.

Among them, there are more than a dozen businesses paying trillions of VND. Topping in great tax payments are automobile and petroleum product importers. The leading business is Vietnam National Petroleum Group, which implemented tax payment of over VND 2,624 billion to the State budget at Ho Chi Minh City Customs Department, followed by; Xuyen Viet Oil Travel and Transport Trading Company contributed 1,973 billion VND, Toyota Vietnam Automobile Company contributed VND 2,455 billion, Honda Vietnam Co., Ltd., contributed 2,322 billion VND; Mercedes Benz Vietnam Company contributed VND 2,100 billion.

In addition, a number of electronic goods and consumer goods importers also contributed large Tax amounts. For example, Lien Thai Binh Duong Co., Ltd., paid VND 1,150 billion; Apple Vietnam Co., Ltd., paid VND 1,100 billion.

Mr. Laurent Genet - Director of Automotive Asia Co., Ltd., Chairman of the European Sub-Committee of Automobile - Motorcycle Industry, said that in 2018, automobile importers were greatly affected by the Government’s amendment for policies on automobile import which had a certain influence on the CBU car imports for businesses, especially high-end cars imported from European countries. However, many businesses made great efforts to overcome, maintain their development activities, and contributed high taxes ..

Continue to implement tax payment well

At the gratitude meeting for businesses accompanying and implementing tax payments well for the State budget, recently held by the Ho Chi Minh City Customs Department, the businesses said that they will continue to accompany the Customs authorities to perform their Tax obligations well for the State.

Ms. Ly Thi Phuong Trang - General Director of Daikin Airconditioning Vietnam Joint Stock Company said that "continuously for 10 years, our company has received the Certificate of Merit from Ho Chi Minh City People's Committee for tax payment achievements. Separately, in 2018, Daikin Viet Nam paid VND 1,532 billion to the State budget, of which VND 820 billion was paid to the state budget at the Ho Chi Minh City Customs Department. The results of business development activities is partly thanks to the guidance Vietnam’s customs officers in general and Ho Chi Minh City Customs Department’s Customs officers in particular, which has helped businesses accurately understand and comply with the provisions of the Customs law, and they desire Vietnam Customs to continue to accompany businesses to achieve the goals set out".

Each year, contributing VND 2,000 billion to the State budget, Mr. Jonathan Hanh Nguyen, Chairman of Lien Thai Duong Company, said that with over 34 years of establishment and development of the Group in Vietnam, the company has developed more than 1,000 high-class shops, and each year it has paid VND 1,950 billion to the State budget. In 2018 the amount of tax paid to the budget was more than VND 2,000 billion (of which, VND 1,115 billion of the import-export taxes was paid at the Ho Chi Minh City Customs Department).

Over the past time, Customs authority has gradually shifted from the management mechanism to partnerships with businesses, many indicators of businesses’ satisfaction for the Customs sector have increased, thereby showing the companionship between the Customs authority and the businesses is more effective.

"According to commitments in FTAs and CPTPP that Vietnam has participated in, there will have a lot of tariff lines to be reduced, the business community desires that the Ministry of Finance will prepare many appropriate policies to create a legal framework and business environment for businesses. Besides, the Customs sector strengthens the anti-tax losses through preventing counterfeit goods, illegal imported goods, creating a healthy business environment, improving the competitive environment, attracting international customers entering Vietnam; broadly advertising to tourists for increasing duty-free goods sales; enhancing dialogues and removing obstacles for the business community, continuing simplification of customs procedures and specialized inspection procedures..."- Mr. Jonathan Hanh Nguyen proposed.

By Le Thu/Ngoc Loan

Source: Customs News