Coordination in revenue collection through commercial banks: Catch the trend of not using cash

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Collaboration of collection through commercial banks helps limit payment by cash at the State Treasury. Photo: Thuy Linh.

It takes only 5 minutes/ transaction in the budget payment

Following the state budget revenue estimates, the State Treasury from the central to local levels has closely and actively coordinated with the collection agencies at the same level, to drastically and effectively implement solutions and measures under the direction of the Ministry of Finance and local authorities in organizing state budget collection. From that collaboration, collecting quickly, fully, promptly and accurately revenues for budget levels; providing data collection regularly and continuously for competent authorities, serving the management of budget collection at all levels.

According to statistics, in 2018, the State Treasury continued to expand collection accounts at 5 commercial banks (Vietcombank, VietinBank, BIDV, Agribank and MB) to enhance the coordination and delegation of state budget collection in cash. The State Treasuries in the provinces have notified and updated the list of accounts to collecting agencies and commercial banks where accounts are opened, propagating and installing signs and instructions on the location of POS at State Treasury units. The above solutions have contributed to collecting revenue quickly with timely payments to the state budget, is supporting taxpayers, ensuring safety and efficiency in managing state budget and minimizing the use of cash in transactions with the State Treasury.

In addition, the State Treasury has reviewed, developed and submitted to the Ministry of Finance to issue documents guiding the management of state budget collection through the State Treasury to meet the requirements of reform and simplification of administrative procedures in the budget collection. The State Treasury cooperated with units in the Finance sector to complete the construction and implementation of the project, "Modernizing the process of tax collection and payment between Customs - Tax - State Treasury", for coordinating state budget collection among agencies in the financial sector with commercial banks...

On that basis, expanding collection accounts at all commercial banks in districts, cities and towns where there are taxpayers; connecting and exchanging data on electronic state budget collection among State Treasury agencies - commercial banks - collecting agencies; applying modern forms of state budget collection and payment, such as with State budget payment via Internet, ATM, via card acceptance equipment (POS/ EDC) installed at the State Treasury office... At the same time, the State Treasury also coordinates with the police and post offices to organize the collection of fines for administrative violations through the postal system.

According to the State Treasury, the drastic and synchronized measures have reduced time and procedures for taxpayers. Taxpayers can choose the most suitable place to pay, at where the State Treasury office or branch/ transaction point of the commercial banks is located, or at any other location via internet banking (ATMs), enabling the ability for making payment outside office hours or through modern state budget collection and payment services. In particular, it only takes about 5 minutes/ transaction (previously about 30 minutes); reducing payment by cash via the State Treasury.

For tax and customs agencies, the State Treasury also monitors the accounting of the State budget revenues quickly and accurately; unifies and minimizes data entry at agencies and units; overcomes the situation of bank transfer documents to the State Treasury which are missing or with incorrect information. Thereby, contributing to speedy state budget revenue collection into the State Treasury; helping to save time, cost, and human resources in the organization.

Reduce work for the State Treasury

Over time, the collaboration with commercial banks has brought significant revenue for the entire State Treasury system. According to Mr. Le Thanh Phuong, Director of Hai Phong State Treasury, in 2018, most of the local budget revenues are collected through commercial banks, especially with import and export taxes, accounting for nearly 100% of the total revenue. The remaining is negligible.

"Before the coordination with the commercial banks was implemented, at the end of the year, the State Treasury offices sometimes had no space because there were so many customers. Since the implementation of the collection commission, the work has been shared, reducing the work for the State Treasury. This coordination has brought effective results, which is in line with the current trend of not using cash," said Le Thanh Phuong.

Vietin Bank’s Hong Bang Branch is one of the first units to coordinate with Hong Bang State Treasury (Hai Phong State Treasury). As of December 25, 2018, the amount of state budget revenue through Hong Bang branch was nearly 13,000 billion VND. On average, a daily collection at Hong Bang branch is up to 400-500 collection transactions.

"The State Treasury facilitated the bank from the first days of coordination in 2009. Overcoming the initial concerns, so far the collection coordination has been quite smooth on the basis of connecting information between electronic portals to the State Treasury, taxes and customs, helping to shorten time for taxpayers as well as for looking up information and avoiding unnecessary mistakes. After an initial coordination period, with more staff, advanced technology and good communication system with all related parties, revenue collection is completely smooth, without any problems,” said the leader of VietinBank’s Hong Bang branch.

Not only Hai Phong, the Hanoi State Treasury is also another unit conducting coordination by collecting from commercial banks quite effectively. Currently, State Treasury units in districts and towns are directly coordinating with commercial bank branches in the area with 5 banking systems. The State Treasury opened a specialized collection account and diversified forms of collection. Thereby, it is helping to reduce the amount of cash collection at the State Treasury, contributing to simplified administrative procedures, creating favorable conditions for customers.

E-tax payment 24/7 system continues to be upgraded and expanded VCN- According to the statistics from the General Department of Vietnam Customs (GDVC), as of the end ...

According to Mr. Dao Thai Phuc, Director of Hanoi State Treasury, the amount of revenue from specialized accounts at commercial banks and bilateral payments accounted for more than 90% of the total state budget revenue in the area. The Hanoi State Treasury also aims to have 100% of revenue collected through commercial banks by 2020.