By the end of third quarter, tax sector revenue reaches more than 66% of estimate

Tax sector’s revenue affected by Decree 100

The Tax sector’s revenue has not yet grown. Photo: T.L

Domestic revenue reaches more than 66% of the estimate

According to the General Department of Taxation, in the first nine months of 2020, the economy was hit hard by the Covid-19 pandemic, causing the decline in production and business activities of many enterprises. Along with that, the implementation of support packages on extensions of deadlines for tax and land use fee payments for businesses and people has causedthe revenue todecline sharply over the same period.

By the end of September, the total tax sector’s revenue is estimated at VND833,165 billion, equal to 66.4% of the estimate, equal to 93% year-on-year.

Of which, the domestic revenue is estimated at VND805,649 billion, equal to 66.1% of the estimate, and equal to 94.5%year-on-year.

According to the General Department of Taxation, although the tax sector’s revenue has not yet grown, to achieve the results is thanks to thegreat effortsofthe tax sector.

“If only calculating revenue in the first nine months of the year, the actual revenue is much lower than the above mentioned revenue. However, in the first quarter, the Tax sector hasurged the collection of taxes arising from 2019 but under the regulations, these taxes shall be declared and paid in the first months of 2020, so the revenue in the first months of the years recorded a good rate, such as revenue from crude oil (reaching 73.1% of the estimate); difference between revenues and expenditures of the State Bank (reaching 101.9% of the estimate); from lottery reaching 88.7% of the estimate. If excluding the above revenues, the 9-month accumulated tax and fee revenue only achieved 61% of the estimate, equalto 90% year-on-year," the General Department of Taxation said.

In addition, in the first nine months of the year, tax authorities at all levels performed 48,975 inspections andinspected436,112 tax dossiersat tax authorities. Since then, the total amount of revenue via tax inspection is VND39,684 billion. Of which, the total additional tax revenue from inspection is VND13,267 billion.The total tax revenue paid to the state budget is VND6,664 billion.

Maximum support for businesses

Facing the complicated development of the Covid-19 pandemic, to support taxpayers restore production and business activities, and strive to accomplish the highest revenue target, the Tax sector has synchronously deployed solutions, in which the key solution is the effective performance of support policies issued by the National Assembly Standing Committee and the Government.

In addition, the General Department of Taxation will work with ministries and sectors to advise on credit and fiscal solutions to remove difficulties in capital, market, supply of raw materials, labor resources and landto help businesses restore production and business, promote economic growth, and create a premise for sustainable revenue growth for the state budget.

The Tax sector will also continue to research and propose to the Government to issue a further extension of deadlines for tax and land use fee paymentsaccording to Decree No.41/2020/ND-CP in the last months of 2020; work with the units under the Ministry of Finance, the Ministry of Natural Resources and Environment to propose exemptions or reductions for the grant fees of water exploitation rights; coordinate with relevant agencies and units to study, evaluate the impact, and report to the Ministry of Finance to have a basis to report to the Government and the National Assembly on further implementation of fiscal policies for businesses and people in the last months of 2020 and 2021.

In particular, in order to minimize the time and costs for businesses to fulfill their obligations to the budget, in the near future, tax authorities will promote reform, simplify tax administrative procedures, and improve quality of tax declarations, tax payments, tax refunds and e-invoices; arrange officers to monitor IT systems 24/7, ensuring that taxpayers can pay taxes to the State budget without direct work with tax authorities;speed up the processing of VAT refund dossiers, create conditions for taxpayers to have more capital sources to maintain production and business activities, and ensure timely tax refunds in accordance with policies and law.