Pressure to obtain the revenue estimates for 2017

VCN- In order to achieve the estimate of revenue assigned by the National Assembly, the Finance sector must collect VND 162 trillion, in which VND 100 trillion is for Central Budget. This is strong pressure. However, the entire Finance sector in general, especially the Tax sector and the Customs sector in particular, have plans to fulfill the task of revenue collection.  
pressure to obtain the revenue estimates for 2017 Tax revenue reached more than 91% of the estimate
pressure to obtain the revenue estimates for 2017 Collaboration of information exchange between Tax and Customs
pressure to obtain the revenue estimates for 2017 The Taxation refunded more than 26 trillion VND via application of electronic tax refund
pressure to obtain the revenue estimates for 2017
The Tax sector must collect the remaining revenues, because some localities have not completed the estimate. Photo: T.L

As of 22nd November 2017, the Tax authority at all levels inspected and audited over 83,700 enterprises and increased the State revenue to over VND 16.1 trillion. VND 11.5 trillion was contributed to the State budget, VND 1.5 trillion was collected from decrease in tax reduction and VND 30.2 trillion was collected from reduction of the loss. Promoting measures to urge and enforce the collection of tax debts. Within 10 months, Tax agencies collected nearly VND 39.9 trillion of tax debts of 2016.

As of 15th November 2017, the Customs implemented 7,700 post clearance audits, increased the State revenue VND 2 trillion, actually collected VND 1.7 trillion; handled and collected VND 590 billion of tax debt arising since 31st December 2016 or earlier. The Customs has strengthened collaboration with other competent agencies to fight against smuggling and trade frauds and seized 12,500 violation cases contributing VND 291 billion to the State budget.

Strong pressure

According to the latest statistics from the Ministry of Finance, in the past 11 months, the total State revenue was VND 1,077.3 trillion, reaching 88.9% of the estimate, equivalent to 86.9% of revenue in the whole year reported to the National Assembly, an increase of 14.5% compared to the same period in 2016. Notably, domestic revenue reached VND 859.2 trillion, equivalent to 86.8% of the estimate. Of which, revenue from dividend and remaining profit of State owned enterprises is estimated at VND 63 trillion, equivalent to 105% of the estimate. Revenue from the sale of State owned shares in enterprises reached VND 13 trillion. The rest of domestic revenue was estimated at VND 661.6 trillion, equivalent to 84.5% of the estimate.

Revenue from crude oil in 11 months reached VND 42.4 trillion, exceeding the estimate by 10.7%. Revenue from imports and exports reached VND 262.4 trillion, equivalent to 92.1% of the estimate. According to Ministry of Finance, the State revenue has tended to increase in recent months mainly thanks to the stable growth rate of import-export activities. The total import and export turnover increased over 21% compared to the same period in 2016, of which the import turnover of major commodities such as petroleum products, computer, electronic products and parts, machinery, equipment, telephone and parts sharply increased.

The Ministry of Finance said that in order to achieve the revenue of the whole year reported to the National Assembly, VND 162 trillion must be collected, which is an increase of VND 64 trillion per month compared to the average revenue in the 11 previous months. This amount was mainly of the central budget. If excepting expected revenue from equitization and the Customs revenue, the remaining revenue is a burden for the Tax sector, especially from big localities with revenue to be contributed to the Central Budget.

The progress of revenue collection of localities was quite high compared to the estimate in the same period in 2016. It was estimated that revenues of 49 of 63 localities reached over 89% of the estimate (of which 36 localities reached 95%). Revenues of 59 of 63 localities was higher than the same period in 2016 and revenues of 4 localities was lower than the same period in 2016. The revenues of localities was low due to objective reasons. For example, revenue of Quang Ngai decreased because it no longer applies the mechanism of revised collection for Dung Quat Oil Refinery. Revenue of Vinh Phuc decreased due to the reduction of production and assembly of automobiles; revenue of Thai Binh decreased due to the reduction from Environment protection Tax for petroleum products; revenue of Thanh Hoa decreased from reduction of contractor tax of Nghi Son Refinery.

The Director General of Taxation Bui Van Nam said, only 4 “small” localities have completed the revenue payment to the Central budget. Meanwhile, big localities such as Ha Noi, Vinh Phuc were going to complete. As a result, the Tax sector must collect over VND 96 trillion to reach the target of the Central budget.

Urging to collect tax debt and reviewing the inspection conclusions

The leader of the General Department of Taxation said that the General Department requested the big localities to work with departments of the General Department to review each revenue and determine to complete the estimate, especially Ha Noi, Ho Chi Minh, Binh Duong, Dong Nai, Ba Ria-Vung Tau. Also, the General Department of Taxation reviewed each tax debt of each unit to drastically collect; urged to inspect and audit and quickly implement inspection conclusions of Ministry of Finance, the Government Inspectorate and the State Audit, including paying the revenue to the Central Budget. Especially, the General Department of Taxation focused on inspecting units with risks based on data on Corporate Income Tax to immediately inspect and promptly collect and pay the revenue to the State budget.

For the Customs, in order to reach the revenue target of VND 295 billion, besides actively facilitating business in goods clearance, the Customs will focus on inspection, audit and anti loss of revenue, post clearance audit, recovery and handling of tax debts.

pressure to obtain the revenue estimates for 2017 7 Customs Departments have to adjust to raise budget revenue target

VCN – In order to complete budget collection target in the last months of 2017, General Department ...

The General Department of Vietnam Customs issued: 3 lists of risk value for 70 commodity groups and over 7,500 price levels, 2 lists of risk of classification and application of tax rates to over 500 commodities, warned suspicious signs on declared code, and tax rate to combat losses in revenue.

In the press conference on revenue collection, Mr. Le Manh Hung, Deputy Director of Import and Export Department said that the GDVC assigned working teams to local Customs departments such as Ho Chi Minh City, Hai Phong, Ha Noi, and Lang Son to guide and inspect tax debt management. Because, these were localities having: a high revenue, high tax debt and increase of new tax debt, complex regime, and many sensitive commodities to strictly require localities to actively implement measures to anti-tax losses.

In this week, according to the instruction of Minster of Finance, the representative of Ministry of Finance and relevant units will organize working teams to work with localities with large contribution to the Central budget. Thereby, encouraging and removing difficulties and supporting and promoting localities to complete the assigned estimate.

Minister of Finance Dinh Tien Dung:

From the beginning of the year, the Ministry of Finance realized and focused on measures to ensure the balance of the Central budget. Besides taking measures to increase State revenue, state funded-localities must basically ensure their revenues. If revenues of theses localities is insufficient, they must use theirs fund to handle, including reserve funds. In case where the revenues is still insufficient, the Central may compensate for, but nearly not compensate.

The Ministry of Finance concentrated on localities with payment to the Central budget to raise their revenues. Attempting to exceed this year’s revenue target. So far, we affirm with the National Assembly that the total State revenue will increase 2.3%.

However, in general the revenue collection is still facing with difficulties, so focusing on contributing to the Central budget. Striving to raise the State revenue from imports and exports to gain the estimate and strictly control the VAT refund, increase revenue resource for balance of Central budget; Focusing on key localities to increase revenue. On the other hand, enhancing inspection, audit and anti-tax losses. Especially, big corporations and groups

The Government drastically increases from equitization. In the recent report, the revenue from equitization was only VND 10,000 billion, but Vinamilk has continuously sold its share with flooring price of VND 150,000 per share but the actual price was VND 186,000 per share, so it collected VND 10,000 billion-a huge number. Besides, the Government is guiding to collect VND 60,000 billion from this resource and ensure the State budget balance.

(Quoted answering question on 16th November 2017)

By Hong Van/ Ngoc Loan

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