Striving for 2023 budget revenue to exceed estimate by 3%

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Amid difficult economic context, the budget collection result represents the efforts of the Finance sector. Photo: H. Anh

Budget collection is reaching the target

The difficulties of the economy have affected state budget revenue in 2023. By the end of November, the country collected VND1,537.6 trillion, equal to 94.9% of the estimate, a decrease 7.1% year-on-year. Of which, domestic revenue is estimated at VND1,272.7 trillion, equal to 95.4% of the estimate, down 3% year-on-year. Excluding revenue from land use fee, lottery, capital recovery, dividend collection, profit, profit after tax and the difference between revenue and expenditure of the State Bank, the domestic tax and fee collection is estimated at 95.4% of the target, approximately equal to the result of the same period in 2022. In particular, some revenues decreased compared to the same period last year, such as environmental protection tax collection estimated at 52.6% of the target, down 17. 4% year-on-year; fees and charges are estimated at 86.8% of the target, down 13.6% year-on-year; house and land revenues are estimated at 78.9% of the target, down 37% over the same period last year due to the slow recovery of the real estate market and the failure in work of auctioning and granting land use rights in many local projects. Regarding revenue in the area, it is estimated that 27 localities had domestic revenue in 11 months reaching over 95% of the estimate; 13 localities had revenue growth over the same period last year, while up to 50 localities had revenue lower than it in the same period last year.

By the end of November, revenue from import and export activities is estimated at VND205.6 trillion, equal to 86.5% of the target, down 22.4% compared to the same period in 2022. The decrease in import and export revenue is due to the decrease in import and export turnover in 2023. As of November 15, 2023, the trade turnover reached US$587.7 billion, down 9% over the same period last year, especially, taxable import and export turnover decreased by 15.5%. Of which, a number of imported tax items with large contribution to the State budget declined sharply, affecting the budget revenue over the same period last year such as: imported raw materials, machinery and equipment, and accessories for production such as coal, chemicals and chemical products, plastics, iron and steel, textile raw materials, electronic components, auto components, reduced the budget revenue by about VND33.1 trillion; imported petroleum group reduced budget revenue by about VND2 trillion; the group of imported CBU cars reduced revenue by about VND3.1 trillion.

In budget collection management, as of November 15, 2023, the Tax agency has conducted nearly 57,700 inspections; checked 535,700 tax declarations, thereby proposing an administrative fine of about VND54.1 trillion. The Customs has conducted about 1, 900 inspections and remitted more than VND1 trillion into the state budget; closely worked with the competent authorities to fight against smuggling, trade fraud and counterfeit goods, seizing 14,100 cases with a value of infirming goods of about VND5.7 trillion, remitting VND433.5 billion to the State budget.

Facilitating business development is a great concern

Director General of the General Department of Taxation Mai Xuan Thanh said that the Tax agency will reach or exceed the 2023 revenue target assigned by the National Assembly. To achieve the highest target, the General Department of Taxation is actively urging collection and collection of outstanding debts. In the first 11 months of 2023, the entire Tax sector refunded VND128,488 billion, equal to nearly 70% of the estimate, equal to 94% of the same period in 2022.

Director General Mai Xuan Thanh also said that by the end of November 30, 5.9 billion invoices had been issued. However, the situation of invoice fraud still exists, so the Taxation continues to coordinate closely with relevant ministries and agencies to prevent invoice fraud and promote the application of information technology in management of invoices to prevent tax loss. Accordingly, in December 2023, to strictly manage invoices, the General Department of Taxation will apply an automatic warning system. "For the remaining time of 2023, the General Department of Taxation will focus on tax collection work, urge the collection of outstanding debts, carry out the set inspection and examination plan, and ensure the work of law making" , said Mr. Mai Xuan Thanh.

Deputy Minister of Finance Vo Thanh Hung said that up to now, budget revenue has nearly reached the estimate. If we continue to make efforts in December, the revenue will reach and may exceed the 2023 estimate. Therefore, the Deputy Minister requires the entire sector to continue to diligently implement budget collection work.

According to Minister Ho Duc Phoc, in the context of many difficulties, the budget collection results have shown the efforts and creativity of the units. Currently, the 2023 budget revenue reached 97% of the estimate. The Minister requested the entire Finance sector to focus on completing the 2023 budget revenue estimate, striving for budget revenue to exceed the estimate by about 3%. The Minister also emphasized that for budget collection, it is necessary to manage electronic invoices well, accordingly, it must to individualize personal responsibilities of tax officials; enhance tax collection on e-commerce platforms; enhance the creation of electronic invoices from cash registers, connect tax agency’s cash registers with supermarkets, petrol stations, restaurants...; and focus on tax refund, ensuring risk avoidance.

Affirming that when the economy is difficult and businesses are in difficulty, budget revenue is affected. When the health of businesses improves, businesses will be able to pay off due bonds and fulfill insurance and budget obligations, the Minister said the core issue is still promoting the development of businesses and economic growth. This is an issue of great concern. Accordingly, the Minister requested that units under the Ministry need to adhere to the law to remove difficulties for businesses, and at the same time continue to work with ministries and agencies to research and develop financial policies to remove difficulties for businesses and the economy.