State budget loses 4.36tr dong on car import drop

A 51 percent decline in import value of completely built-up (CBU) cars has brought a total revenue loss of 4.36 trillion dong to the State budget in the first four months of the year, said a report announced by the Vietnamese Ministry of Finance.

According to the report on the State budget revenue and spending in April and the first four months of 2012, the revenue gained from export-import balance dropped by a considerable 1.3 trillion dong in Jan-April This is ascribed to the poor growth in export- import turnover and the change in import structure, in which items with high import tax rates sharply decreased year-on-year.

In particular, as of the end of the first quarter, the value of imported CBU cars has tumbled by 51 percent, causing a loss of 4.36 trillion dong to the State budget revenue. Similarly, import values of CBU motorbikes and motorbike parts dipped 42 percent and 16 percent respectively, thus the budget revenue suffered respective losses of 336 billion dong and 110 billion dong.

Furthermore, domestic auto production and trading also brought a hefty loss to the central budget revenue.

According to the finance ministry, the State budget revenue in April as well as Jan-April period was mostly contributed by domestic sources. By April-end, the total State budget revenue hit 234.39 trillion dong, or 31.7 percent of the estimate.

Domestic revenue amounted to 152.81 trillion dong, 30.9 percent of the estimate, rising 2.1 percent year-on-year. In April alone, domestic revenue increased 6.51 trillion dong against March, and revenue from production and business activities surged by 5.4 trillion dong.

Meanwhile, the total State budget spending in April is estimated at 67.3 trillion dong, taking spending in the four months to some 264 trillion dong, equal to 29.2 percent of the estimate, picking up 7.1 percent over the same period last year.