Difficult economy have a strong impact on revenue collection

The tax revenue in the first five months of 2023 meets the estimate. Photo: H.Anh

The total revenue is estimated at VND663,843 billion

Facing the difficult situation of the economy and accomplishing revenue collection in 2023, the Tax sector has analyzed, evaluated and sought solutions for implementation, especially focused on reviewing and identifying potential revenues to assign to each officer, each unit and area to increase the revenue and compensate lost revenue; strengthened inspection to prevent revenue loss, collected tax debts and strived revenue collection 2023.

In addition, the Tax sector has effectively implemented support packages and promptly removed difficulties for businesses, created momentum for businesses and people to restore production and business activities and develop stably quickly, promoted economic growth, and created sustainable revenue; focused on solutions to strengthen inspection and examination; managed and collected tax debts; implemented tax refund and maintained disciplinary in the whole sector.

In the first five months of 2023, the total tax revenue reached VND663,843 billion, meeting 48.3% of the estimate and 96.9% year-on-year. 12 of 20 revenues and tax types increased compared with the same period of the previous year, including the revenue of State-owned enterprise (SOE) at 52.9%, industry, commerce and non-state services at 49.8%, personal income tax at 50.3%, dividend income and remaining profit at 59.1%... 8 of 20 revenues were lower than the same period in 2022, below 48%. The revenue from environmental protection tax is estimated at 53 %; the registration fee at 72.5%; the land use fee at 44.6%, and land and water surface rents at 48.9%.

According to the General Department of Taxation, as of May 15, the Tax sector conducted 14,727 inspections and examinations, meeting 121.1% year-on-year; checked 160,460 tax dossiers at the Tax office. The total revenue from inspection reached VND4,721 billion, a tax deduction of VND472 billion and a loss reduction of VND15,189 billion.

The Tax sector collected VND 243.3 billion from inspection and re-determination of the market price for related-party transactions, reduced the loss of VND 5,021 billion, and revised up taxable income of VND 98.8 billion.

In the first five months of the year, the Tax sector collected VND18,408 billion of tax debt.

The Tax sector implemented debt freezing and debt cancellation under Resolution No. 94 of the National Assembly by the end of May at VND 36,968 billion, including frozen debts at VND28,983 billion and VND 7,985 billion of fines and late payment interest.

Advising scenarios for revenue collection

Shortly, the Tax sector will actively monitor the domestic and global situation to analyze and assess the impact of other countries' monetary and fiscal policies on domestic enterprises' production and business activities to identify risks and advise on scenarios and solutions for revenue collection management.

The Tax sector will continue to organize effective tax management for foreign suppliers, thereby listing and urging foreign suppliers that have not yet registered for tax registration and payment on the website of the General Department of Taxation; promptly solving problems for foreign suppliers to fulfil their tax obligations.

The sector will continue to reform and modernize the tax system, simplify tax administrative procedures, maintain the e-tax declaration and tax refund services and electronic invoice system, and ensure the smooth operation of the IT system to support taxpayers in fulfilling their obligations. Implement the progress of electronic projects such as tax payment services for land, business households and individuals; execute electronic registration fee payment for cars and motorbikes; pilot e-tax declaration for house rentals; expedite the provision of electronic tax search, registration, declaration and payment services for individual taxpayers, especially focusing on encouraging the use of electronic tax application for mobile devices (eTax Mobile); make plans to connect with commercial banks to have full data on taxpayers, control income and tax obligations, avoid loss of state revenue, thereby, improving the efficiency of tax administration and contributing to the completion of assigned tasks.

At the conference to review performance in May and set out tasks in June held by the General Department of Taxation, Acting Director General of the General Department of Taxation Mai Xuan Thanh said that although the progress of revenue collection in the first five months of the year met the estimate, there saw a decrease year-on-year. This showed that economic difficulties had a strong impact on revenue collection and are forecasted to continue to affect the economy shortly negatively. In addition, the revenue collection in 2023 will also be significantly affected by the State's support packages, which are expected to be implemented soon.

To perform the assigned tasks well, Mr Mai Xuan Thanh suggested that the whole sector should review, analyze and carefully evaluate the revenue of the first five months of the year and accurately identify potential revenues, thereby assigning tasks to each officer, unit and area to raise revenue and compensate lost revenue.

Urgently speed up the implementation of the approved inspection plan; complete the application of blocking of illegal issuance of e-invoices; assess the actual application of e-invoices generated from cash registers; analyze and evaluate obstacles to advise the General Department of Taxation for appropriate direction and ensure successful implementation nationwide.