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Professional activities at Lao Cai State Treasury. Photo: Thuy Linh

The proportion of cash collection through the State Treasury is lower

Recently, the most impressive thing is the quiet scene atthe State Treasury, the absence of customers ata state administrative agency. Most of the transaction counters are quiet, only the State Treasury officials are still diligently working with computers behind the dividers. The reason for this is that in recent years, the entire State Treasury system has accelerated the application of information technology with the aim of modernizing payments, striving to minimize direct cash transactions.

In order to do this, the State Treasury has implemented a centralized electronic payment system with commercial banks and the State Bank; expanded the channels of state budget revenue, thereby improving the efficiency, accuracy and timeliness of the management of state budget revenues and expenditures and reducing the proportion of cash transactions through the State Treasury system.

Up to now, the fact that people can pay taxes anytime, anywhere, is familiar, while payment information reduces time and costs for taxpayers. At the same time, the exchange of electronic data on state budget revenues and cash collection authorization also helps to reduce the workload of state budget collection at the State Treasury, facilitating the State Treasury to continue refining itsapparatus.

The bank also has the opportunity to provide more quality payment services to customers, improve the position and brand of the unit. Up to now, the state budget revenue in cash at the State Treasury has been only 0.47% of the total collection through the State Treasury.

Hai Duong province is a typical example of the effectiveness of collection coordination.

Specifically, since 2017, Hai Duong State Treasury has expanded collection coordination with all transaction offices located in the areas of five banking systems: Vietcombank, VietinBank, Agribank, BIDV and MB.

By October 2019, Hai Duong State Treasury opened 45 collection accounts and payment accounts to coordinate budget collection. This local coordination is in line with the State's policy of implementing e-Government and reducing the amount of cash in the market. In 2019, the rate of collection through Hai Duong State Treasury is only 0.25%. And in the first eight months of 2020, revenue through the State Treasury of Hai Duong decreased to 0.18%.

According to Ms. Truong Thi Thanh Hoa, Deputy Head of Customer Transaction Office, BIDV - Hai Duong Branch, all tax and fee-related revenues are collected electronically by BIDV in collaboration with the State Treasury of Hai Duong. Accordingly, wherever customers can conveniently pay and can use any means such as computers or smartphones to fulfill budget obligations to the State.

In particular, Ms. Hoa said, in order to further facilitate customers in payments, the State Treasury signed an agreement with five commercial banking systems on not collecting transaction fees that the state budget will pay this amount.

“If before, customers went to BIDV-Hai Duong Branch to pay tax, but the tax if it belongs to the State Treasury of Quang Ninh or the State Treasury of Hai Phong, will have to pay fees. But thanks to the coordination of collection between the two sides, the bank currently does not charge this fee anymore. Accordingly, customers who pay taxes and fees at any BIDV bank across the country can avoid charges, but the fee will be paid by the Treasury from the budget to the bank. This is really convenient for customers,” Ms. Hoasaid.

Expand coordination channels

In order to continue promoting administrative reform, creating more favorable conditions for people and businesses, the State Treasury has expanded the coordination of budget collection between the State Treasury and joint-stock commercial banks.

According to Deputy General Director of the State Treasury Tran Thi Hue, the State Treasury coordinates with a number of joint-stock commercial banks to open and use the State Treasury's collection account system at banks and coordinates to collect and authorize state budget collection; at the same time connecting and exchanging information and electronic data on budget collection between banks and the State Treasury.

All budget revenues via banks will be recorded directly into the system of treasury collection accounts at the bank, ensuring the focus on the state budget. After that, information about the revenues is sent to the General Department of Taxation and the General Department of Customs quickly, safely and conveniently.

Saigon - Hanoi Commercial Joint Stock Bank (SHB) is one of five banks to cooperate in coordinating state budget collection and electronic payments with the State Treasury since June 2020. Through this cooperation, the State Treasury coordinates with SHB in opening and using the State Treasury collection account system at SHB and coordinating collection, authorizing state budget collection, connecting and exchanging information and electronic data on state budget revenues between SHB and the State Treasury.

According to information from SHB, after only two months of signing the dealwith the State Treasury, in September 2020, SHB piloted the service of coordinating state budget collection and electronic payments with the State Treasury in Hanoi (State Treasury of Ba Dinh district) and State Treasury of Quang Ninh province. SHB expects that in October 2020, it will continue to coordinate with the State Treasury, tax agencies and Customs to expand the service of state budget collection and electronic payments throughout the system.

According to Mr. Nguyen Van Le, General Director of SHB, the implementation of cooperation agreements with agencies such as the State Treasury, the General Department of Taxation, and General Department of Customs to coordinate on state budget revenue is of great significance to create favorable conditions for taxpayers who are individuals and enterprises to fulfill their tax obligations to the state budget.

This is the premise for the parties to enhance modernization, improve service quality, and actively participate in the Fourth Industrial Revolution.