Tax sector finally implements solutions to ensure budget revenue in 2023

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Solutions to support businesses are considered a tonic, helping businesses return to contribute to budget revenue. Photo: ST
Solutions to support businesses are considered a tonic, helping businesses return to contribute to budget revenue. Photo: ST

Many difficulties

According to the General Department of Taxation report, the total state budget revenue in the first 3 months of 2023 managed by the tax agency is estimated at 430,535 billion VND, equaling 31.4% of the estimate, equaling 105.5% compared to the implementation in 2022. Although the collection in the first quarter reached 31.4% of the estimate, an increase of 5.5% over the same period, the progress of budget collection was lower than in the previous 2 years; Revenue over the months showed signs of rapid decline. Generally, in 3 months, excluding post-settlement and unexpected revenues arising in 2022 and paid in 2023, the domestic revenue in the first quarter is only 19.1% of the estimate, equal to 84.6% over the same period.

A Thai Nguyen Provincial Tax Department representative shared that in the first 4 months of 2023, budget revenue from industries and fields such as steel, electronics, mining, and cement in the province faced many difficulties. The budget revenue decreased sharply because the production and business activities of the above fields tended to slow down. The Thai Nguyen Tax Department has proposed drastic solutions, focusing on implementing 3 key issues. Accordingly, the Tax Department has actively worked with crucial enterprises with significant budget contributions in the area, carrying out a case-by-case review to ensure the ability to collect according to the annual estimate. By the end of April 2023, the Tax Department had worked with 30 large enterprises in the province and planned to work with Samsung Company, and at the same time, identified inspection and examination as an effective tool in management. Tax administration, including on-site inspection, contributes to offset the revenue shortfall, so in 2023, the Thai Nguyen Tax Department will continue to do well in inspection and examination, first of all focusing on risk analysis. In 2022 alone, Thai Nguyen has collected more than 300 billion VND through inspection and examination, 10 times higher than in recent years and ranked 10th in the country. Thai Nguyen Tax Department has also assigned a plan to collect land-related amounts and land use fees in detail for each project; actively advised the Chairman of the Provincial People’s Committee to implement the project, speeding up the collection of land use fees.

Mr Thai Minh Giao, Deputy Director of the Tax Department of Ho Chi Minh City, said that some of the key solutions deployed by the Tax Department of Ho Chi Minh City are to focus on managing and collecting revenues promptly, strengthening tax debt management; proactively review the declaration of enterprises, the declarations have conflicts. Along with that, monitoring and evaluating the receivables are extended to pay when they are due; coordinating with departments and branches to strengthen the management of business activities and real estate transfer; advising the City People’s Committee on legal solutions for real estate projects; strengthen coordination with the Department of Finance, the Department of Natural Resources and Environment to collect revenues from land at the proposal of the State Audit.

Timely grasp and remove difficulties for businesses

According to the representative of the Hanoi Tax Department, the unit has synchronously deployed many solutions to strive to complete the assigned revenue collection task. According to Mr Nguyen Tien Truong, Deputy Director of the Hanoi Tax Department, determining the implementation of the directives of the Government, the Ministry of Finance, the General Department of Taxation and the City, including support packages and management solutions which are a tonic to significantly support capital for businesses to recover, develop production and business, and contribute back to the state budget, Hanoi Tax Department has been effectively implementing guidelines and policies. Lessons learned by the unit are to transmit timely and complete information to policy beneficiaries (through forms such as via website, email, and phone). In addition, promptly grasp and remove difficulties for businesses and taxpayers on a large scale through online forms based on digital platforms. At the same time, the Department of Taxation has been. It continues to manage taxpayers, including businesses, organizations and individuals, closely, based on fully grasping and updating identification information, information about products and business activities, monitoring the declaration and fulfilment of obligations to the state budget.

In addition, the unit has also stepped up inspection, examination and prevention of tax loss in which, continuing to promote thematic inspection and examination, focusing on several industries and activities with a high risk of violations, such as finance, real estate, e-commerce, the supply chain for tax refund businesses and will focus on inspecting and examining businesses with large associated transactions – the target group there is plenty of room for revenue exploitation; publicize information about businesses buying and selling invoices, using illegal invoices, invoices of businesses leaving their business addresses, to warn businesses nationwide in their business relationships, minimizing risks on invoices, tax refund.

According to Deputy General Director of the General Department of Taxation Phi Van Tuan, to perform well the task of revenue collection for the whole year of 2023, the tax sector must analyze, evaluate as well as find the most fundamental, practical and specific solutions for each area, each revenue, each tax. Therefore, local tax departments need to focus on closely following specific tasks and solutions based on implementing 10 tasks and 22 groups of solutions that have been directed by the General Department of Taxation to be implemented at the beginning of the year, in which, well implement tax and fee support packages for businesses and people, remove difficulties, create momentum to restore production and business activities in the shortest time, thereby generating revenue. At the same time, concentrate on several solutions to find sources of revenue, offset some revenues, and reduce taxes in some areas; drastic implementation of tax debt recovery solutions, thereby striving to complete the revenue collection task in 2023.

Tax sector proposes handling over VND1 trillion from inspections Tax sector proposes handling over VND1 trillion from inspections

In the first quarter of 2023, many essential revenues were lower than in the same period last year, such as VAT by 95.5%, SCT by 92.9%, PIT by 97.3%, etc. Moreover, the reduction in revenue occurred in many industries and fields in many localities, such as real estate by 54.9%; cars by 73%; securities by 42.6%; oil and gas by 88.1% over the same period in 2022.

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