Revenue collection must be top priority

The conference

The performance of revenue collection in the first quarter of 2023 took place in the context that the world economy faces difficulties and pressures from inflation pressure, great challenges of the financial and monetary system when the domestic currencies in many countries depreciated sharply, and the conflict between Russia and Ukraine has not been forecast to end.

In the country, GDP in the first quarter only increased by 3.32% compared with the same period in the previous year, the lowest level in recent years; the import and export turnover plunged in the two consecutive months.

Total trade in goods in the first quarter decreased by 13.3% year-on-year. The added value of the whole industry fell by 0.82% compared with the same period in the year. The newly established enterprises declined by 2% in the number of enterprises, 34.1% in registered capital and 12.8% in the number of employees compared with the previous year, affecting the revenue collection in the first quarter of 2023.

According to the General Department of Taxation, the total State revenue in the first quarter of 2023 is estimated at VND430,535 billion, meeting 31.4% of the estimate and 105.5% compared with 202.

The revenue from crude oil was estimated at VND15,883 billion, meeting 37.8% of the estimate and 90.8% year-on-year; domestic revenue was estimated at VND414,653 billion, reaching 31.1% of the estimate and 106.1% year-on-year. The revenue from domestic taxes and fees was estimated at VND332,234 billion, reaching 31.1% of the estimate and 107.1% compared with ayear ago.

Deputy Director General Phi Anh Tuan speaks at the conference.

According to Deputy Director of the General Department of Taxation Phi Anh Tuan, although the revenue in the first quarter rose by 5.5% year-on-year, meeting 31.4% of the estimate, the progress of revenue collection was lower than in the previous two years.

The domestic revenue in the first quarter only reached 19.1% of the estimate and 84.6% year-on-year if excluding the post-settlement and unexpected revenues arising in 2022 and paid in 2023.

Many key revenues were lower than the same period last year such as VAT, SCT and PIT reaching 95.5%, 92.9% and 97.3%, respectively. Many industries and sectors saw areduction in revenue such as real estate down 54.9%; automobiles down 73%; securities down 42.6%; oil and gas down 88.1% over the same period of the previous year.

Solutions on tax reduction policies were issued soon such as policies on reduction of Environmental Protection Tax, and reduction of land rent in 2022. Currently, the Tax sector proposes to reduce 2%-VAT for all 10% taxable items.

The total reduced and deferred tax amount in 2023 is estimated at VND194 trillion.

According to the Deputy Director, the implementation of these policiesin the near future will affect the revenue collection in 2023. The whole Tax sector should have a specific assessment to provide drastic solutions to raise revenue and compensate for the decrease in the implementation of new policies.

“We have eight remaining months to perform the task, in addition to performing revenue collection, implementing support packages and new legal policies, restructuring operational progresses and other legal policies, the modernization and reform and controlling e-invoice show that we have a lot of work to do, including the revenue collection as the top priority,” said Tuan.

At the conference, Director of Tax Audit and Inspection Department Vu ManhCuong said that by the end April, the Tax sector conducted 9,753 inspections, rising111.5% year-on-year.

The total revenue from inspection and audit recorded VND15,124 billion,up225% year-on-year. The total tax amount to the State budget reached VND2,397 billion or 61.77% of additional revenue from inspection and audit.

For the inspection of transfer pricing and tax erosion prevention, thanks to the promotion of the application of measures, the number of profitable enterprises business has gone up. Many businesses have declared and revised up their taxable income by redefining associated transaction prices.

By the end of the first quarter, the whole Tax sector had inspected and audited 117 enterprises with related party transactions, collected tax arrears and refund VND1,453.49 billion, reduced losses VND2,292 billion, reduced deductions by more than VND10 billion and increased taxable income by VND113 billion.