Focusing on successfully completing the financial - budget tasks in 2022

Minster of Finance Ho Duc Phoc

Speaking at the Conference, the Minister of Finance said that the Ministry of Finance would add solutions to lead, operate and successfully complete the task of budget estimation in 2022 and other tasks of the Ministry of Finance. The Minister expressed his wish that the Prime Minister would continue to support and accompany the Ministry of Finance in the implementation of fiscal and budgetary tasks in 2022.

Minister Ho Duc Phoc also said that the Ministry of Finance acknowledged the comments of ministries, sectors and localities at the Conference, and would coordinate with other ministries and localities to remove obstacles, thereby promoting the economic development of the country.

At the conference, the Minister said that, besides advising the Government on budget management and administration, the Ministry of Finance was also an active ministry in formulating policies. The policies issued by the Ministry of Finance must ensure that national finance, corporate finance as well as residential finance develops together.

In 2021, the number of Government decrees developed by the Ministry of Finance accounted for 26% of the decrees issued by the Government (40 out of 153 decrees). Along with that, more than 20% of the total circulars issued by ministries and branches in 2021 also belong to the Ministry of Finance. Thus, the number of documents issued and advised by the Ministry of Finance is very high.

The Minister also affirmed that, in 2021, the revenue collection increased compared to the estimate and compared to the revenue of the previous year in the context of extreme difficulties due to the Covid-19 pandemic. It showed the strong vitality of the economy.

Besides that, the Ministry of Finance had worked well in combating tax loss, trade fraud, and promoting economic development. Currently, the Ministry of Finance has deployed e-invoices with codes in six major localities. After more than a month of implementation, more than 4 billion invoices have been received and registered, reaching over 90% of the plan.

“In the first quarter of 2022, e-invoices with codes would be deployed in the remaining 47 localities. It is suggested that local leaders should be concerned so that on July 1, 2022, all localities and businesses would use e-invoices with codes to prevent revenue loss, fraud and tax profiteering when refunding added value tax,” Minister Ho Duc Phoc suggested.

Regarding the issue of real estate transfer and collection on a digital platform on e-commerce exchange, Minister Ho Duc Phoc said that the Politburo had reached a conclusion and the Ministry of Finance had also proposed to the Government and Prime Minister to amend the decree on land use levy and tax collection to prevent loopholes in land use levy and land rent collection, and avoid lawsuits.

Regarding the one-time payment of land rent, the Minister said that the Politburo had concluded that it was necessary to limit the one-time payment of land rent to avoid damage to the state.

According to the report of the Ministry of Finance, the synchronous and effective implementation of fiscal, monetary and other macroeconomic policy solutions in the context of the Covid-19 pandemic has been actively controlled since the end of September 2021. It has helped production and business activities to be gradually restored to a new normal status.

As a result, in 2021, revenue collection is estimated at VND1,563.3 trillion, equaling 116.4% (exceeding VND219.9 trillion) of the current appropriation, up 3.7% compared to 2020.

Accordingly, it mainly consisted of revenue from crude oil, income from import and export activities and collection of land use levy; domestic tax and fee collection from production and business activities exceeded 14.5% of the current appropriation, an increase of 11.3% compared to the implementation in 2020; the rate of mobilization into the state budget reached 18.6% of GDP (beyond the target of 15.5% of GDP).

Central budget revenue is estimated at 106.7% of the current appropriation; local budget revenue is estimated at 128.2% of the current appropriation.