Pressure increases, the tax sector tries to make up for the shortfall in budget revenue

	Tax sector performs best in Administrative Procedure Cost Index
	Tax sector applies IT to inspection

The Tax Department has well implemented support packages for businesses and people to restore production and business activities, creating revenue for the state budget. Photo: Internet.

Budget revenue is equal to 90.5% over the same period

According to the General Department of Taxation, in the last months of 2023, the world economic situation is still unpredictable, inflation has cooled down but remains at a high level, and the domestic economy faces many difficulties. In that context, the tax authority continued to focus on directing and organizing the implementation of the task of budget revenue management under the direction of the Government and the Ministry of Finance. Along with that, the tax sector has been well implementing support packages for businesses, promptly removing difficulties, creating momentum for businesses and people to quickly restore production and business activities, develop stably, promoting economic growth, creating a sustainable source of revenue for the state budget (state budget).

Thanks to efforts in managing budget revenue and supporting businesses, the total state budget revenue in the first 7 months of the year managed by the tax sector was estimated at 868,624 billion VND, equaling 63.3% of the ordinance estimate, equaling 94.5% compared with the same period. In which, domestic revenue was estimated at 832,647 billion VND, equaling 62.5% compared to the ordinance estimate, equaling 95.2% over the same period. There are 14/20 revenues and taxes that are quite good compared to the estimate (over 60%); 13/20 revenues and taxes have revenue growth over the same period; 7/20 revenues and taxes are lower than in the same period (e.g. environmental protection tax is estimated at 61.7%; registration fee is estimated at 72.7%; land use levy is estimated at 42.2%; land rent, water surface rent are estimated at 66.7%). By area, there are 27/63 localities whose progress in implementing the estimate is higher than 60%; In 36/63 localities, the collection progress is low (less than 60%).

Along with budget collection, in the first 7 months of the year, the tax sector has been effectively implementing inspection, examination, combating transfer pricing, and preventing loss of state budget revenue. The inspection and examination carried out by tax authorities at all levels has been focusing on the management issues of the sector such as strengthening tax inspection and examination for enterprises operating in e-commerce, business on digital platforms; strengthen tax inspection and examination in the field of invoices; VAT refund; Enterprises having associated transactions, etc.

Following the direction of the Ministry of Finance, the General Department of Taxation has also issued Directive No. 01/CT-TCT dated April 11, 2023 on strengthening measures to review and control invoices to prevent fraud in use of invoices. Accordingly, tax departments of provinces and cities focus on promoting professional measures to prevent and combat detection of enterprises buying and selling illegal invoices and tax refund fraud. At the same time, regularly coordinate with the Customs to verify the origin of goods, import declarations, export shipments of tax refund enterprises and the transportation of goods related to export shipments. Coordinating with police agencies to verify arising economic transactions, detect acts of invoice fraud, appropriation of tax refunds; coordinate with banks to verify payment via bank. By the end of July 2023, the whole tax sector has carried out 32,711 inspections, reaching 40.8% of the plan in 2023 and equal to 96.5% over the same period in 2022; inspected 335,655 tax declaration dossiers at the tax authorities, equaling 93.7% compared to the same period in 2022. The total amount proposed to be handled through inspection and examination is 32,866.2 billion VND, equaling 151.7% compared to the same period in 2022.

The pressure on budget collection is increasing

According to the General Department of Taxation, in the first 7 months of 2023, tax refund work will continue to be accelerated by tax authorities at all levels, and at the same time, promote control of value-added tax refund (VAT) to ensure Tax refund strictly, in accordance with the provisions of law.

Mai Xuan Thanh, Acting Director of the General Department of Taxation, said that following the direction of the Prime Minister and Minister, in June and July 2023, the General Department of Taxation has issued many documents directing and organized inspection teams, working directly with the big tax department, and at the same time having many meetings to speed up the progress. From now to the end of 2023, the tax sector will stick to the tax refund estimate plan assigned in 2023, quickly and urgently implement tax refund for businesses in the spirit of thoroughly handling tax refund risks.

Along with the inspection and examination, the results of tax administration for e-commerce show that the total state budget revenue of foreign suppliers has declared and paid directly on the portal since January 1, 2023 up to now is 3,405 billion VND. Tax debt management is also actively involved in the tax sector. In the first 7 months of 2023, tax debt management and tax debt collection have been paid attention and focused to by tax authorities at all levels. However, because the post-Covid-19 epidemic still has a negative impact on the economy, affecting people and businesses, on the other hand, the price of oil and input materials has many fluctuations, affecting most fields, economic industries; production and business face many difficulties; The amount of tax debt has tended to increase over the months, which has adversely affected the implementation of tax debt collection. In such a context, tax authorities at all levels advise competent authorities to develop and issue tax policies to remove difficulties and obstacles, and assist taxpayers to maintain production and business, create favorable conditions for taxpayers to extend tax debt, gradually pay tax, exempt from late payment interest, and cancel tax debt in accordance with the provisions of the Law on Tax Administration, Decrees and Resolutions of the Government. The total amount of tax owed to the tax administration sector is estimated at the end of July 2023 to be 151,325 billion VND, down 0.4% compared to June 30, 2023, up 2.4% compared to December 31, 2022. Accumulation by the end of July 2023 is estimated at 25,608 billion VND. Debt settlement according to Resolution No. 94 of the National Assembly accumulated by the end of July 2023 is estimated at 37,059 billion VND.

Assessing the implementation of the 2023 budget estimate, Mr. Mai Xuan Thanh said, up to now, the tax sector's revenue has reached 64.5% of the ordinance estimate, basically reaching the assigned estimate schedule. But from July, the tax and fee reduction policies will have a certain impact on budget revenue, the pressure on budget collection will therefore increase higher than in the first months of the year.

Facing the general difficulties of the economy, the tax sector determined that the task of budget collection in the remaining months was very heavy. Accordingly, the whole industry continued to perform well the management of budget revenue, along with that, well implemented support packages for businesses and people, restored production and business activities, and generated revenue for the state budget. Tax sector will closely monitor and evaluate the economic situation in the country and the world; analyze and identify the impacts of monetary and fiscal policies that countries have implemented on production and business activities of domestic enterprises to properly identify risks and promptly advise the Ministry of Finance and Government. The government has scenarios and proactive solutions in managing state budget revenue in August 2023 as well as the following months.

In the first 7 months of 2023, the Tax sector issued 9,990 decisions on tax refund, equivalent to the refunded tax amount of VND 71,825 billion, equal to 39% of the VAT refund fund in 2023 approved by the National Assembly, equal to 85% over the same period last year.