The Tax sector fights against losses of budget revenues

VCN- In first 6 months of the year, the country has 44/63 Tax Departments with tax revenue of over 50% of the whole year estimates. In the context of difficult economy, this is an achievement, showing the great efforts of the entire Tax sector in management of revenue collection and prevention of budget 
the tax sector fights against losses of budget revenues
Results collected in the first 6 months of 2018 by the General Department of Taxation is estimated at 531.520 billion VND. Photo: Thuy Linh.

Promote management of revenue collection

According to Mr. Dang Ngoc Tam, Director of HCMC Tax Department, since the beginning of the year, the unit has closely followed the eco-social situation in the area to analyze the factors that affect the increase and decrease of revenue sources for each sector, each revenue, key enterprises… thereby, it has solutions to collect timely and effectively. At the same time, the unit also determines potential revenue, fields and taxes that are losing to timely propose effective management measures and collection mechanism.

“Apart from paying attention to the support activities and taxpayers' convenience, the Tax Department of Ho Chi Minh City has also stepped up measures to combat tax losses. Specifically, strengthen the management of revenue sources and declaration to ensure that 100% of organizations and individuals conducting production and business activities in the locality are included in the management and declaration of tax payment. The tax agencies will also organize to guide, inspect and urge the performance of the tax declaration obligation to maintain the quality of declaration and to ensure that the rate of tax declaration dossiers is 100% on time with the tax obligation that must be declared in accordance with the regulation,” said Dang Ngoc Tam.

Mr. Mai Son, Deputy Director of Hanoi Tax Department, said that from the beginning of the year, his Department has focused on accelerating the reform of tax administrative procedures, vigorous application of information technology in all stages of tax management. The Hanoi Tax Department is the leading unit of the Tax sector in the application of information technology and online declaration, reaching over 98%; electronic tax is over 95%.

Listen to the locals when assigning estimates

Beside the provinces with good revenue in the first 6 months, there are still localities with low revenue compared to the estimates.

In the first 6 months of this year, the Thanh Hoa Tax Department collected 5,253 billion VND. In recent years, the Thanh Hoa Tax Department has focused on advising local authorities on some urgent measures to complete the revenue collection, especially in the fight against loss of individual household business, business services, tourism, restaurants, construction…

Mr. Ngo Dinh Hung, Director of Thanh Hoa Tax Department said that, in the last 3 years, the Thanh Hoa Tax Department has not fulfilled its assigned estimates. The reason is that some large enterprises in the province with trading in traditional products such as beer and cigarettes, have falling revenues due to these units having been established for a long time, technology renovation is slow, the productivity is limited. Thus, revenue fell, profit is low, and that seriously affects the state budget revenue. Therefore, the Thanh Hoa Tax Department proposed the General Department of Taxation to listen to comments from the locals when assigning the estimates.

Beside the estimation issue, some local Tax departments are facing difficulties in debt management. According to Mr. Nguyen Van Luyen, Director of Quang Ngai Tax Department, the total tax debt management for the unit is 560 billion VND. Of which, debt was 194.3 billion VND; debt that is able to be collected, over 365 billion VND; 2 billion VND of debt is waiting for handling.

“The problem is that some businesses and contractors in the area do not currently accept the payment of tax arrears. Currently, the Department of Taxation has coordinated with the police to enhance the handling and investigation of tax evasion. The Quang Ngai Tax Department also asked the General Department of Taxation to coordinate with the General Department of Police to review and amend the Criminal Code, to supplement the contents of tax debts and tax evasion into the provisions of the law,” the leader of the Quang Ngai Tax Department recommended.

In addition, in order to improve the efficiency of tax administration and increase revenues for the state budget, some local tax departments also asked the General Department of Taxation to reconsider the policy of collecting VAT with a number of special items. To study, take consideration and promulgate a simple accounting policy for micro-enterprises, newly set-up enterprises, collect enterprise income tax at fixed rates; To amend a number of provisions on tax administration in the current Law on Tax Administration to raise the efficiency and effectiveness of tax management.

At the meeting of the first 6 months of the General Department of Taxation held on July 20, Mr. Dang Ngoc Minh, Deputy General Director of Taxation said that the results in the first 6 months of 2018 by the General Department of Taxation, the revenue was estimated at 531,520 billion VND, equivalent to 49.7% of the plan, up by 13.9% compared to the same period. In particular, the revenue from crude oil is estimated at 29.565 billion VND (equal to 82.4% of the estimates, increasing by 25.3%); the domestic revenue was estimated at 496,782 billion VND (equivalent to 48% of the estimates, equaling to 112.1% compared to the same period). Excluding land use fees, dividends, profit and the income from lottery, the revenue is estimated at 402,506 billion VND, equal to 46.4% compared to the estimates, increasing by 13% compared to the same period.

Remarkably, in the first 6 months of 2018, the domestic collection rates of 44/63 localities were over 50% of the estimates; Many localities have high revenue. This has helped to balance the budget - a key political task of the finance sector.

Deputy Minister of Finance Tran Xuan Ha:

From now to the end of the year, the General Department of Taxation, Tax Departments and Tax Sub-Departments should make further efforts to implement the revenue estimates assigned by the National Assembly and the Government, striving to exceed by 5% of the budget estimates as directed by Deputy Prime Minister Vuong Dinh Hue at the six-month conference on finance (including the Central budget revenue).

The task of collecting in the last 6 months of the year is still very heavy, so the whole tax sector must direct and urge the collection right now, especially where revenues are low and localities have low revenue.

City and provincial Tax Departments are to focus on promoting the implementation of inspection plans in 2018, reaching at least 18.5% of the total number of operating enterprises, collaborate with functional forces such as: The State Audit, the Inspectorate, the Public Security Service, the Market Management Department... to prevent tax evasion and fraud.

The tax sector must also continue to review the administrative procedures, supplement and amend the circulars and professional processes in tax affairs in a clear, public and transparent manner for all taxpayers, as well as for the tax administration to improve the business investment environment and prevent corruption.

By Thùy Linh/ Kiều Oanh

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