Free trade agreements increase tax collection

11:04 | 22/12/2019 Finance - Banking

The signing and implementation of free trade agreements has increased Việt Nam's tax collection this year, said Lưu Mạnh Tưởng, director of Import-Export Tax Department under Vietnam Customs.

Cars is a main import product of Việt Nam in 2019 — VNA/VNS Photo

According to Vietnam Customs, total tax collection of the sector has so far reached VNĐ335.6 trillion (US$14.5 billion), an 11.6 per cent year-on-year increase and exceeding the target of the finance ministry.

At a Vietnam Customs press conference on Wednesday, Tưởng said free trade agreements between Việt Nam and the Republic of Korea (RoK), ASEAN and RoK, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership have helped improve Việt Nam’s business climate and created better conditions for trade.

“The free trade agreements have also expanded investment and trade activities of Vietnamese enterprises, having positive impacts on the country’s export and import,” he said.

Tax collection from export-import activities in the first 11 months of this year reached $105.16 billion, up 7.97 per cent compared to the same period last year.

Cars and crude oil are key import products.

Since early this year, more than 135,200 cars worth $2.91 billion have been imported, double the number in the same period last year.

More than seven million tonnes of crude oil were imported in 11 months, costing VNĐ3.33 billion ($144,800).

Tax collection from these two products during the period hit VNĐ46.08 trillion ($2.03 billion), a year-on-year increase of more than VNĐ21.6 trillion ($939 million).

Vietnam Customs has cracked down on trade fraud, smuggling and inspected tax-free and tax reduction cases, said Tưởng.

About VNĐ992 billion ($43.1 million) of tax arrears have beenpaid as of November 30.

To facilitate citizens and businesses to pay tax anytime and anywhere, the customs authority has signed tax collection agreements with 42 commercials banks.

A total 30 banks offer 24/7 online tax payment and others collect direct payment.

Thanks to the system, 96 per cent of import-export enterprises have paid tax online.

Theo VNS