Tax sector has prepared scenarios to implement revenue collection

The average quarterly domestic revenue (including the revenue that is extended following the regulations) is on a downward trend. Photo provided by General Department of Taxation

In the first 11 months of 2022, the tax sector’s revenue collection reached VND 1,363,501 billion, exceeding the estimate by 16.1% and equaling 115.3% compared to the same period in 2021. There were 60 out of 63 localities reaching over 95% of implementation progress.

According to the General Department of Taxation, although the result of revenue collection in 11 months has exceeded the estimate, the average quarterly domestic revenue (including the revenue that is extended following the regulations) is on a downward trend.

For example, revenue collection in the second quarter decreased by nearly VND20 trillion compared to the first quarter (average reduction of 5% per month); revenue collection in the third quarter reduced by over VND34 trillion compared to the second quarter, a decline of over VND50 trillion compared to the first quarter (average decrease of over 10% per month compared to second quarter, dropping over 15% per month compared to the first quarter).

In particular, revenue in August was only about VND105 trillion per month while it was only about VND82 trillion per month in September.

Notably, many industries and fields grew quite well in the first months of the year, but so far, they are facing many difficulties and have started to decelerate such as exploiting and processing petroleum industry (because oil prices are in a downward trend); steel production, cement, building materials, construction industry (due to high input prices, slow consumption output); securities and real estate sectors (due to the cooling down of the market); banking sector (due to the policy of controlling credit growth to stabilize inflation); textile, garment, footwear, and wood export and processing industries (due to the impact of high inflation in many major countries around the world, strict monetary policies have been implemented, consumption demand decreased rapidly).

Notably, the report of the State Bank said, so far, 80 countries in the world have witnessed double-digit inflation or more, and many major economies in the world simultaneously implemented tight monetary policies.

These phenomena would likely trigger a decline, even economic recession would take place quickly in many major economies around the world. Vietnam is a highly open economy, so the fast and unpredictable developments of the world economy have been putting great pressure on the Vietnamese economy in the coming months, especially in 2023.

The tax sector determined that revenue collection would face great pressure, so right now, the whole sector has prepared scenarios for implementing collection tasks following the direction of the Ministry of Finance.

The Tax sector would continue to effectively implement tax support solutions following the Resolutions of the National Assembly and the Government issued to provide maximum support for businesses to facilitate and help businesses recover and develop stably, attract new investment, contribute to creating a solid source of revenue for the state budget; researching and proposing to competent authorities to implement strong solutions in terms of fiscal, monetary, public investment, in order to support more capital for businesses, maintaining the recovery of the economy in 2023.

In addition, the tax sector would also strengthen the implementation of solutions for revenue management, prevent revenue loss, collect tax debts, strictly control value-added tax refunds, and speed up the implementation of inspection plans and debt collection targets; classify tax debts fully and strictly following the instructions in the Tax Debt Management Process in order to have appropriate solutions to manage and urge collection.

Furthermore, the tax sector would step up inspection and examination for enterprises in industries and fields with high tax risks and enterprises with associated transactions; transactions related to e-commerce, business on digital platforms, and suspicious transactions, contributing to improving the business investment environment and improving competitiveness indexes to increase revenue for the state budget.