State revenue collection poised to surpass annual target

The Finance sector has focused on implementing solutions to strengthen revenue management. Photo: H.Anh

Revenue collection hits 97.2% of target

Government reports show that the Ministry of Finance was given a state budget target of VND 1,700.99 trillion for 2024. Current estimates suggest that by year’s end, revenue could reach VND 1,873.3 trillion—surpassing the target by VND 172.3 trillion, an increase of 10.1%.

According to updated data, as of the end of October 2024, state budget revenue stood at an estimated VND 1,654.2 trillion, or 97.2% of the yearly target. Central budget revenue reached 101.7% of its goal, while local budget revenue hit 92.7%, representing a year-on-year increase of 17.3%. The remaining gap to the full-year target is now within striking distance.

In a challenging year for the economy and businesses alike, these results are a positive sign.

The Ministry of Finance attributes this success to concerted efforts in revenue management, tax inspections, and audits, alongside a crackdown on smuggling and trade fraud, aggressive tax debt recovery, and close monitoring of tax declarations and payments. Embracing digital transformation has also strengthened tax oversight, with electronic invoicing expanding tax control over retail sales to consumers. A digital payment portal for foreign suppliers has been successfully rolled out as well.

By mid-October, the Tax Department had conducted 48,200 inspections and reviewed 409,600 tax declarations, with financial recommendations totaling VND 49 trillion. Of this amount, about VND 12.3 trillion was recommended for state revenue, with VND 8.5 trillion already collected. Tax departments have also reduced deductions and loss provisions by nearly VND 36.7 trillion, while tax debt recovery efforts have yielded approximately VND 58.1 trillion.

Customs authorities also carried out nearly 1,800 inspections, contributing VND 442.8 billion to the state budget. Working closely with other agencies, Customs tackled 14,700 cases of smuggling and trade fraud, confiscating goods worth around VND 26.3 trillion and collecting VND 745.7 billion in fines.

Effective fiscal management

In terms of domestic revenue, three main economic sectors reached 90.8% of the target, reflecting an 8.3% year-on-year increase. State-owned enterprises met 86.8% of their target, up by 2.2%, while foreign-invested firms contributed 89% of their goal, a 5.8% rise. The private sector outperformed, achieving 94.3% of its target, a notable 13.5% increase, underscoring the vital role of private businesses in the state budget and overall economy.

Mai Xuan Thanh, General Director of the Tax Department, stressed the need for sustained efforts as global uncertainties continue. The Tax Department is committed to maximizing revenue collection efforts through year-end to achieve the best possible outcome.

Local tax authorities, particularly those lagging behind budget projections, are urged to intensify their efforts. Beyond revenue collection, tax departments are focused on implementing tax and fee exemptions and reductions, as well as land rent relief, to support businesses and individuals. These policies aim to bolster stable growth, contributing to a sustainable revenue source for the state budget.

The Ministry of Finance reports that these positive revenue outcomes reflect proactive fiscal policies and support measures for businesses and citizens in tough economic times. In October, tax and customs authorities continued implementing tax exemptions, fee reductions, and extensions, in line with government directives to support those affected by Typhoon No. 3. These measures have helped stabilize operations and resume production, with total tax relief estimated at VND 149.1 trillion from January to October 2024.

In a recent National Assembly session on finance and budget, Deputy Prime Minister and Minister of Finance Ho Duc Phoc highlighted that, over the past four years, expansionary fiscal policies have boosted the economy by reducing taxes and fees for citizens and businesses while increasing state spending. Over this period, state budget revenue has exceeded projections by nearly VND 1 quadrillion.

“To achieve these results, the Tax and Customs sectors have transformed their collection methods from manual to electronic systems. While boosting revenue, the National Assembly and Government have reduced taxes by nearly VND 800 trillion for citizens and businesses, marking the fifth consecutive year of tax cuts. These policies have proven highly effective for fiscal management,” Minister Ho Duc Phoc emphasized.