Domestic tax collection prospers

The economy has recovered and the business situation of enterprises prospered, helping tax revenue increase. Photo: ST

17 revenues and taxes reach over 60% of the current appropriation

According to the General Department of Taxation, by the end of July, the state revenue collected by tax sector has reached more than VND911 trillion, equaling 77.5% of the ordinance estimate and increasing by 17.2% over the same period in 2021. There are 17 out of 19 areas, tax revenues and taxes that achieved a good result (over 60%). There are some large revenues such as the state-owned enterprise sector is estimated at 66.8%; foreign-invested enterprises are estimated at 65.6%; the industry, commerce and non-state service sector are estimated at 75.9%. Besides that, revenues and taxes such as personal income tax are estimated at 90.1%; registration fee collection is estimated at 79.6%; the land rental collection is estimated at 87.3%; land use fee collection is estimated at 97.1%; revenue from the lottery is estimated at 66.2%; other budget revenues reached 85.7%.

According to the General Department of Taxation, there are currently only two items that are in slow collection progress; environmental protection tax (estimated at 53.9% of current appropriation due to the implementation of Resolution No. 18/2022/UBTVQH15 on reducing 50% of the environmental protection tax rate for gasoline (except ethanol), diesel, fuel oil, lubricating oil, grease; reduction of 70% of the environmental protection tax rate for kerosene that took effective from April 1, 2022) and revenue from State-owned houses for rent and sale (estimated at 51%).

Director General of Taxation Cao Anh Tuan said that the sectors that contributed the largest amount of revenue in the growth of domestic revenue in the first seven months of the year were banking, securities, real estate and oil and gas. Total revenue from these industries in 2021 reached about VND140,000 billion, accounting for 14% of total domestic tax revenue; implementation in the first seven months of 2022 increased by 31.4% over the same period. However, the leader of the General Department of Taxation also noted that the collection rates for the banking, securities, real estate and oil and gas sectors are unsustainable. This is reflected in the fact that in the first quarter of 2022, the revenue reached about VND48,300 billion, an increase of 18.1% over the same period, but the revenue in the second quarter of 2022 had a clear decrease, the total revenue was about VND40,000 billion, equalling to 82.8% compared to the first quarter of 2022.

The leader of the General Department of Taxation also informed that the state budget revenue in seven months achieved quite good results because the tax sector has implemented the extension policy in 2021 following Decree No. 52/2021/ND-CP. Along with that, in 2022, the tax sector continue to extend tax in accordance with Decree No. 34/2022/ND-CP dated May 28, 2022, enterprises that are subject to the extension of the tax period in March, In April, May and the first quarter of 2022, has paid the extended tax amount into the state budget about VND41,600 billion.

“However, it is forecasted that revenue in the last months of the year will face many difficulties due to the impact of the Government's priority in controlling inflation, strengthening the management of bond issuance for real estate enterprises, strictly controlling the real estate and securities markets”, Mr. Cao Anh Tuan said.

Moreover, the Tax sector is implementing a number of policies to support businesses and people which took effect in 2022, resulting in the reduction of revenue collection. This includes the reduction of the value-added tax rate from 10% to 8% for some goods and services currently subject to the 10% tax rate, except for some groups of goods and services as prescribed in Decree No. 15/2022/ND-CP from now to the end of 2022. This resulted in reduced revenue collection with an estimated VND 12,000 billion, or the policy of reducing tax on environmental protection from now until the end of the year will also have a significant impact on the state revenue.

Checking sources of revenue

Although the revenue collection achieved quite good results by the end of July, the task of the tax sector from now until the end of the year is still very heavy.

In the future, the whole tax sector will focus on closely following the direction of the National Assembly, the Government, the Prime Minister and the Ministry of Finance on the implementation of the main tasks and solutions, to manage the implementation of the Socio-economic Development Plan and state budget estimates in 2022 and to implement solutions to strive to complete the collection task in 2022. Furthermore, it will implement tax support solutions following the Resolution of the National Assembly and the Government in the program of socio-economic recovery and development.

The unit continues to research, advise and submit to competent authorities to issue appropriate solutions in order to continue supporting businesses and people. At the same time, reviewing and implementing tax administrative procedure reform as required in the Government's Resolution on continuing to perform key tasks and solutions to improve the business environment and enhance national competitiveness.

To complete the assigned estimate, each tax department has a specific plan. As at Hoa Binh Tax Department, from now until the end of the year, this unit will continue to monitor, synthesize, analyze and evaluate the progress of implementing the collection for each revenue and tax; inspect, review, evaluate and clarify the reasons for the revenue loss, potential revenues, advising solutions to better organize the state management of revenue collection in the province.

The Department of Taxation will coordinate with the Department of Natural Resources and Environment, the Department of Planning and Investment, and related agencies to implement coercive measures in handling the recovery of tax debts, land rent debts, money for changing the purpose of land use rights, money for granting mineral exploitation rights, projects with a large amount of debt with a long debt period; advise and propose to the Provincial People's Committee to recover land for the cases of violation of the Law on Land, revoke mineral mining licenses for enterprises that still owe money for granting mining rights in accordance with the regulations.

For example, Thai Binh Tax Department has set a target of achieving total domestic revenue in 2022 of VND11,920 billion. To achieve this figure, Thai Binh Tax Department and districts and cities have reviewed revenues, propose appropriate collection solutions and not lose revenue at all three budget levels. At the same time, reviewing the conclusions of the inspection, audit and outstanding taxes to urge collection and payment.

Furthermore, implementing solutions to facilitate taxpayers such as; timely dissemination of tax policies, the latest policies on tax exemption and reduction, and timely removal of difficulties and obstacles to promoting production and business of taxpayers. In particular, Thai Binh Tax Department will further strengthen tax collection measures in areas with plenty of room, such as real estate business, private capital construction, and e-commerce; coordinate with districts, cities and related branches to urge the collection of land use levy.