A official from the Ha Noi Department of Taxation provides information to a taxpayer. Budget collection in the first nine months of this year was equivalent to 70 per cent of the full-year's target. — VNA/VNS Photo Hoang Hung

HA NOI (Biz Hub) — Budget revenues reached VND718.3 trillion (US$32.2 billion) in the first nine months of the year, accounting for around 70 per cent of the annual target, a representative of the Ministry of Finance said in its quarterly press briefing early this week.

The figure also represented an increase of 5.2 per cent compared to the same period last year.

Deputy Minister of Finance, Nguyen Huu Chi, said State revenue remained low due to the impact of lower crude oil prices, causing difficulties for companies and groups operating in the field.

Specifically, budget collection from crude oil in the nine months was only VND29.8 trillion, representing a year-on-year slump of 41.9 per cent.

Contribution to the State budget by State-owned enterprises during the period was only equal to 96.7 per cent of the funds paid to the coffers in the corresponding period last year.

Meanwhile, budget expense totaled VND870.5 trillion, up 5.7 from the figure a year ago.

Through budget expense, the State overspent VND152.2 trillion in the first three quarters of the year. The amount is equivalent to 60 per cent of the quota that the National Assembly had allocated for overspending in 2016.

Responses to issues

Also in the meeting, representatives of the ministry responded to reporters' questions on several issues.

Related to the ministry's following plan after the price ceiling imposed on powdered milk products for children under six years old will expire by the end of the year, deputy head of the ministry's Price Management Department, Dinh Thi Nuong, said that the ministry would review the results of the decision on a national scale and report to the Government.

Under the ministry's Decision No 1079, which took effect on June 1, 2014, retail prices are not allowed to exceed 115 per cent of the wholesale prices.

After the ceiling was removed, the ministry would take some alternative measures to stabilise the market, Nuong said.

The ministry would ask customs and tax agencies and related authorities to check the import prices of raw materials and products declared by producers and businesses, and make reference to prices of similar products imported to other regional countries to avoid misdeclaration by local businesses.

As of September 30, 2016, ceiling prices of 888 milk products for under six-year old children were published on website of the ministry and localities' finance departments.

Regarding taxes on petrol products, head of the ministry's Tax Policy Deparment, Pham Dinh Thi, said that R92 petroleum was subject to special consumption tax, value-added tax, environment protection tax and import tax, which contributed to 41.5 per cent of the retail price.

The information that petrol products in Viet Nam were suffering double taxation, which made the proportion of taxes in retail prices jump by more than 50 per cent is baseless, Thi said.

Each tax was imposed in line with international practices, he stressed, adding that the percentage was still lower than levels in some other countries.

For example, the proportion is 70 per cent in South Korea and 56 per cent in Laos, Thi said. — VNS