Domestic revenue has not reached expectations

Hanoi Taxation Department has developed many specific solutions to achieve the first half of the budget. Photo by Thuy Linh.

Earnings in the first 6 months of 2017 are estimated at 464.5 trillion VND, equal to 48% of the estimate, up 12.9% over the same period. Of which, revenue from crude oil was estimated at 23.037 trillion VND, equaling 60.1% of the estimate, up 15.6%; domestic revenue is estimated at 441.5 trillion VND, equaling 47.5% of the estimate, up 12.7% over the same period. Revenues excluding land use fees are estimated at over VND 390 trillion, equaling 45% of the estimate, up 10.2% over the same period.

The results achieved above is because the entire tax system has implemented well tax management functions, paying special attention to inspections, preventing losses, closely controlling the VAT refund, strengthening to recover debts and continue to accelerate the reform of administrative procedures, remove difficulties and accompany the enterprises help timely mobilize revenue sources for the state budget.

According to the General Department of Taxation, in the past six months, the whole sector has answered 115,000 problems for taxpayers in various forms (direct instructions, telephone answers, email, written answers ); organized 830 sessions for 60,700 participants. Along with that, the tax office also inspected and checked 36,664 enterprises, reaching 40.5% of the plan in 2017; with the total tax increase through inspection and examination is over 7,600 billion VND, up 34.07% over the same period in 2016; total amount of tax paid to the budget is 3.430 billion VND.

The management of tax debt collection is also actively implemented, ensuring the timely collection of tax debts into the state budget, minimizing the status of new tax arisen. As a result, tax authorities at all levels have taken measures to raise 16,004 billion VND in tax liabilities in 2016, up 13.3% over the same period. Total debt tax as of 31st of May, 2017 is 75,534 billion VND, compared with 31st of December, 2016 increased by 1.39 trillion VND (1.9%); equal to 6.2% of total state budget revenues. In which: tax debt (with the ability to collect) to 90 days and over 90 days is 48.2 trillion VND, compared with 31st of December, 2016 decreased 489 billion VND (1%); 4% of total state budget revenue. Tax debt of taxpayers who die, are missing, lose their civil act capacity, relating to criminal responsibility, self-dissolving, went out of business (unable to collect) is 27.3 trillion VND, compared with 31st of December, 2016 increased nearly 1.9 trillion VND (7.4%).

The progress of state budget revenues of most localities has ensured the budget implementation progress and growth over the same period. Of which, 17 localities were higher than the estimates. However, there is still 20 local revenue does not guarantee budget schedule; 7 local revenues are lower than the same period in 2016.

As one of the localities collected more than 50% of the estimate, the Hanoi Taxation Department supposed, the main reason is that the local authorities have actively implemented many solutions, including assigning state budget revenues to each department, each tax department, each tax team and all officers. Moreover, to attach responsibility, Mr. Nguyen The Manh - Deputy Director General of Taxation and Director of Hanoi Taxation Department said that the Department has assigned the task of collecting state budget in 2017 for each position from Head and Deputy Head of Division to Chief and Deputy Chief of Sub-department, with each revenue and revenue amount under his/her charge, on that basis shall be deployed to each officer.

At the Da Nang Department of Taxation, according to Director General Nguyen Dinh An, economic growth quite accompanied by a number of new tax policies has helped increase revenue about 350 billion VND. In addition, in the first 6 months of the year, the city has much revenue from the sudden transfer of capital, transfer luxury apartments increase revenue about 500 billion VND. However, the operation of some large enterprises changed due to the restructuring of the revenue-reducing effect like revenue, such as the Central Electricity Corporation reduced by about 110 billion VND, collected the Environmental Protection Tax of the Aviation Fuel One Member Limited Liability Company reduced about 75 billion VND, etc.

Similarly, the revenue of Vinh Phuc province decreased since the beginning of 2017, Honda Vietnam Company and Toyota Vinh Phuc Company - two large contribution companies in the area stopped production of Civic and Fortuner, switch to import the complete units for domestic consumption. Of which, Civic about 1,200 vehicles, Fortuner about 7,000 vehicles. The revenue reduction per vehicle is about 300 million VND. The price of some other vehicles also decreased, causing the state budget revenue to decrease accordingly.