A successful year for tax sector

	Tax sector’s revenue exceeded estimate in difficult context of Covid-19 pandemic
	Ministry of Finance streamlines its apparatus, saving VND 3,000 billion
	Tax sector has already settled over VND9.907 billion in tax

Estimated revenue in 2021 assigned by the National Assembly, the Government and the Ministry of Finance to the Tax sector is VND 1,116,700 billion. Photo: Thuy Linh

Many localities have exceed the estimated revenue for 2020

According to Director General of the General Department of Taxation Cao Anh Tuan, in 2020 the tax sector performed revenue collection amid the difficult global economy as well as Vietnam economy due to the Covid-19 pandemic. However, resulting from the great efforts of the sector and drastic measures, the tax sector’s revenue in 2020 reached VND 1,278,649 billion, exceeding 1.9% compared with the estimate.

Notably, the tax revenue exceeded VND 24.4 trillion compared to the estimate and increased VND 175.9 trillion compared to the estimated revenue reported to the National Assembly, of which, 55 of 63 localities completed the estimate and Phu Yen exceeded the estimate of fee and charge revenue. In addition, seven localities have not completed the estimate, but they strive to increase revenue compared to the estimated revenue reported to the National Assembly.

At the conference reviewing State revenue collection of the tax sector on January 1, Minister of Finance Dinh Tien Dung said 2020 wasa successful year forthe tax sector. The tax sector has performed well with the directions fromthe Government andthe Ministry of Finance, innovated and made in tax administration and achieved the “dual goal” of fulfilling the revenue collection and supporting businesses and people to overcome difficulties amidthe pandemic period. This showed a“bright spot” in the State administration results of the Ministry of Finance and the Government.

Strive for exceeding 5% of the estimate

According to Tuan, the State estimated revenue in 2021 assigned by the National Assembly and Government to the tax sector is VND 1,116,700 billion. In the context that the forecast for the world and domestic economy still has many difficulties, revenue in the first quarter of 2021 is forecast to be more difficult than the same period in 2020 (because economic growth in fourth quarter 2019 was 6.97% while growth in the fourth quarter 2020 only was 4.48%).

Directing on the revenue collection of the tax sector, Minister of Finance Dinh Tien Dung said that from the beginning of the year, the sector needs to make great effort to fulfill the estimate 2021, especially the tax revenue must exceed 5% of the assigned estimate. Along with that, complete comprehensively tax inspection, tax examination andtax debt management, ensuringthe revenue from tax inspection, tax examination and tax debt collection in 2021 is higher than 2020.

Foreseeing the difficulties of 2021, each local tax department has had different plans and solutions to remove difficulties and complete tasks. Director of Hanoi Tax Department Mai Son said that the department has considered businesses and taxpayers as the key factor, regularly exchanged information, grasped difficulties of businesses and taxpayers; advised to implement policies of the National Assembly, the Government and the Ministry of Finance and the city on removing difficulties for businesses andtaxpayers, helping them to restore production activities after the Covid-19 pandemic, having a cash flow to remit to the State budget, and creating a basis for raising sustainable revenue.

According to Director of Lao Cai Tax Department, Duong Thi Thu Hang, the department will develop and assign specific targets and tasks to each level (from the head, deputy head to each officer) to implement from the beginning of 2021,collect outstanding tax debts; conduct tax inspection and tax declaration,provide specific solutions for each goal andtask group in accordance with each period. In addition, enhance and promote the role and responsibility of the head and officer assigned to the task andregularly supervise and control for analysis to handle problems.

The leader of the General Department of Taxation said that in 2021, the tax sector will strive to exceed at least 3% of the estimated revenue in 2021 and complete the central estimated revenue. It strives that all 63 provinces and cities will complete the assigned estimate.