Jan-Aug tax revenue lower than expected

HCMC – Vietnam’s tax authorities have sounded the alarm over a concerning decline in tax revenue, indicating potential fiscal health issues.

Tax revenue in the first eight months of 2023 fell by 6.1% year-on-year at VND962.1 trillion, representing 70.1% of the full-year estimate, according to a report released on September 11 by the General Department of Taxation.

Out of the 20 major revenue categories, 14 exceeded 68% of their annual targets and experienced growth, while the remaining six declined.

This trend has raised concerns among tax officials, with Mai Xuan Thanh, head of the General Department of Taxation, expressing worries about the tax revenue fall. In January, tax revenue amounted to VND94 trillion, but by August, the figure had dropped to VND75 trillion.

During the eight-month period, Vietnam’s tax authorities also refunded nearly VND87.2 trillion in value-added tax (VAT). This figure accounted for 46.9% of the annual VAT refund target of VND186 trillion set by the National Assembly for 2023. It represents a 10% decrease compared to the total refunds made during the same period in 2022.

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