Persistent difficulties in the collection of taxes of the tax industry

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Accumulated State budget revenue in seven months managed by Taxation is estimated at VND 666,080 billion. Photo: ThuyLinh

Revenue did not grow over the same period

According to the latest report from the General Department of Taxation, the estimated State budget revenue in July managed by the tax industry is VND 91,600 billion. This revenue is only 7.3% of the ordinance estimate, or 70.2% over the same period in 2019.

Revenue from crude oil was only 36% over the same period; Domestic revenue is estimated at 71.5% compared to the same period in 2019. Revenue excluding land use fees, dividends and remaining profits and revenue from lotteries and the difference between the State Bank's revenues and expenditures reached 71.1% over the same period in 2019.

Thus, the accumulated State budget revenue in seven months managed by taxation is about VND 666,080 billion. This revenue is equal to 53.1% of the ordinance estimate, or 91.5% over the same period in 2019.

According to the General Department of Taxation's analysis, the result of budget revenue managed by the tax agency in seven months of 2020 is the lowest compared to the revenue of some recent years in both progress and speed (revenue 7 in May, 2019 57% of the annual revenue, up 11.8% over the same period; in 2018 the corresponding rate was 56.7%, up 16.2%; in 2017 reached 54.8%, up 16, first).

The movement of revenue over months decreases and sharply decreases from April onwards. The collection progress is quite concentrated in some of the sources with economic arising in 2019, but according to regulations, enterprises declare and pay taxes in the first months of 2020.

According to the General Department of Taxation, the economic situation in the first seven months of 2020 was greatly affected by the Covid-19 pandemic, especially the implementation of the Government's guidance on the implementation of preventive measures including social distancing activities in April 2020, especially in big cities and provinces like Hanoi and HCM City. Therefore, during the time of isolation, most of the pandemic activities non-essential services must be closed, other production and business activities are restricted, impactingthe production and business activities of enterprises.

Since May, the pandemic situation in Vietnam has basically been controlled, the economy has gradually been reopened, but the recovery is still very slow.

According to the General Department of Taxation, the implementation of the Government's solution packages to support businesses, organizations and individuals affected by the Covid-19 pandemic according to Decree No. 41 / ND-CP on the Government. The government has sharply reduced the budget revenue in the first sevenmonths, especially from April to now.

Strict management of business operations

With the effects of reduced revenue from complex policies and pandemic, the state budget revenue is managed by the Tax authority although there is no growth compared to the same period in 2019 (only 91.5%).To get suchresults, the tax agencies at all levels have simultaneously implemented many collection management solutions.

Accordingly, the General Department of Taxation has directed the Department of Taxation to deploy revenue estimates from the first day and the first month; assigning tasks of inspection and examination of enterprises in 2020 to the Tax Department. Along with this, focusing on timely and effective implementation of collection management solutions, focusing on reviewing all the businesses registered for business to put into tax management, checking the entire number of people paying the tax notice of cessation of operation; strictly control the work of value-added tax refund to ensure tax refund in accordance with the provisions of law; and strengthen the management of sales invoices.

According to the General Department of Taxation, recently, the tax office has focused on checking and reviewing the number of enterprises registering for business, the number of enterprises temporarily suspending business and ceasing operations, especially after the Tet holiday and taxpayers reporting stop business during the disease outbreak. From this problem, it is guaranteed to put into tax administration for 100% of taxpayers who have business to inspect and strictly control production, business, tax declaration and payment of enterprises.

Besides, tax agencies at all levels continue to identify the exact subjects, adjust the presumptive tax rates to suit business reality and combat the loss of State budget revenues.

In the first seven months of the year, tax agencies at all levels have carried out 32,851 inspections and tests, reaching 35.53% of the plan in 2020; 301,420 tax records were checked at the tax office. The total amount of money handled through inspection and examination was VND 30,695 billion; increase State budget revenue by VND 10,915 billion. In particular, 104 businesses were engaged in associated transactions; arrears, retrospective and fine of VND 269 billion; reduced a loss of VND 1,785 billion and adjusted to increase taxable income to VND 2,373 billion.