The Government will implement comprehensive measures to meet next year'sannual State budget collection target of 911.1 trillion VND (42.774billion USD), notwithstanding the insignificant effect of the global oilprice decline.
Some experts are concerned about thereduction of the State's budget next year as the export value of crudeoil, which has fallen by 30 percent to a four-year low of roughly 60 USDper barrel, contributes significantly to the nation's coffer.
However, Deputy Finance Minister Do Hoang Anh Tuan said that as of2014, the State coffer has not been heavily dependent on the fluctuationof the world's oil price due to a shift in the State's budgetcollection sources.
Tuan explained that the oil export revenueis estimated to account for only approximately 10.2 percent of thetotal State budget in 2014 compared with the previous 20–25 percentrate.
State budget collection from domestic production makesup more than 70 ercent of the total budget, which diminishes thegravity of the impact of oil export collection.
Dr. Tran HoangNgan, a member of the National Assembly's Economic Committee, alsoexpressed continued optimism despite the predicted oil pricefluctuations, saying that the gains will be larger than the losses.
Vietnam has to spend more on importing petroleum products compared with its earnings from exporting crude oil.
Therefore, an ongoing decline in oil prices will result in lowerprices of petroleum products. In turn, this will help enterprises cutback on their production costs.
Hence, enterprises can expecthigher profits, which will consequently add to their taxes to be paid tothe State coffer. Ultimately, this will help increase the State'srevenue.
Finance Minister Dinh Tien Dung also said that theministry will focus on eliminating obstacles and creating favourableconditions for firms to boost production and business.
Themeasure will create a long-term collection source for the State budget,Dung said, explaining that the firms will only be able to fulfill theirtax obligations when their businesses and production performances aregood.
Moreover, the finance ministry has worked closely withother relevant departments and agencies to employ relevant measures toguarantee the achievement of the State budget collection target, Dungsaid.
One of the measures is to increase the collection of taxarrears, which has reached more than 60 trillion VND (2.816 billionUSD) so far.
To increase the state budget collection nextyear, experts also recommended that the Government should effectivelymanage State budget collection and reduce spending, includingadministrative and regular expenditure as well as public debt payment.
Strict punishment should be meted out against those responsiblefor improper, wasteful and ineffective expenditures, the expertsasserted.-VNA
Some experts are concerned about thereduction of the State's budget next year as the export value of crudeoil, which has fallen by 30 percent to a four-year low of roughly 60 USDper barrel, contributes significantly to the nation's coffer.
However, Deputy Finance Minister Do Hoang Anh Tuan said that as of2014, the State coffer has not been heavily dependent on the fluctuationof the world's oil price due to a shift in the State's budgetcollection sources.
Tuan explained that the oil export revenueis estimated to account for only approximately 10.2 percent of thetotal State budget in 2014 compared with the previous 20–25 percentrate.
State budget collection from domestic production makesup more than 70 ercent of the total budget, which diminishes thegravity of the impact of oil export collection.
Dr. Tran HoangNgan, a member of the National Assembly's Economic Committee, alsoexpressed continued optimism despite the predicted oil pricefluctuations, saying that the gains will be larger than the losses.
Vietnam has to spend more on importing petroleum products compared with its earnings from exporting crude oil.
Therefore, an ongoing decline in oil prices will result in lowerprices of petroleum products. In turn, this will help enterprises cutback on their production costs.
Hence, enterprises can expecthigher profits, which will consequently add to their taxes to be paid tothe State coffer. Ultimately, this will help increase the State'srevenue.
Finance Minister Dinh Tien Dung also said that theministry will focus on eliminating obstacles and creating favourableconditions for firms to boost production and business.
Themeasure will create a long-term collection source for the State budget,Dung said, explaining that the firms will only be able to fulfill theirtax obligations when their businesses and production performances aregood.
Moreover, the finance ministry has worked closely withother relevant departments and agencies to employ relevant measures toguarantee the achievement of the State budget collection target, Dungsaid.
One of the measures is to increase the collection of taxarrears, which has reached more than 60 trillion VND (2.816 billionUSD) so far.
To increase the state budget collection nextyear, experts also recommended that the Government should effectivelymanage State budget collection and reduce spending, includingadministrative and regular expenditure as well as public debt payment.
Strict punishment should be meted out against those responsiblefor improper, wasteful and ineffective expenditures, the expertsasserted.-VNA
