Enterprises return to production, tax collection exceeds the estimate

Many enterprises have restored production activities and have achieved relatively positive business results. Photo: Ngọc Hiền

Overcoming difficulties

In 2021, the tax sector has implemented breakthrough solutions suitable for each month, each locality, each revenue and each tax. Accordingly, the whole sector has focused on implementing state policies to remove difficulties for businesses and people, restore and promote production and business with the motto “Safe adaptation, flexibility, effectively control the Covid-19 pandemic”.

In particular, the sector has synchronously and promptly implemented support packages for tax exemption, reduction and extension, and land rent, bringing these support packages to life and empowering businesses.

For example, at the HCM City Tax Department, in 2021, this unit is assigned an estimate of VND256,893 billion. This is one of the localities that was hardest hit by the Covid-19 pandemic, especially in August and September.

In October 22, 2021, the General Department of Taxation had an online meeting with the local tax department to review revenue sources and discuss solutions to promote tax collection.

At that time, HCM City Tax Department forecast that the revenue was only about VND23,000 billion in October and the whole year was only VND250,139 billion, equaling 97.4% of the current appropriation. However, under the drastic direction of the State and leaders of the city, since October, the pandemic has been controlled, the city has gradually reopened the economy, production and business activities resumed in accordance with the Government's direction on safely adapting to the new situation and determined to implement revenue collection solutions of the Tax Department.

Statistics from HCM City Tax Department showed that revenue from October had grown again, reaching over VND33,600 billion. The accumulated revenue as of December 10, 2021 of the Tax Department reached VND243,052 billion, equaling 94.6% of the current appropriation.

Thus, the remaining amount that needs to be collected in the last 20 days of the year is about VND13,800 billion. With the current pandemic situation under control, along with solutions and determination, HCM City Tax Department confirmed that it was possible to accomplish the assigned estimate, exceeding it by 1% to 2%.

One of the tax departments whose revenue plays an important role in the whole country is Hanoi Tax Department. Up to this point, this unit has also exceeded the estimate. As of November 30, Hanoi Tax Department reached 102.6% of the current appropriation. It is estimated that in 2021, the unit would complete 108% of the estimate. To get this result, the Tax Department has fully and effectively implemented solutions of the Government, the Ministry of Finance, the General Department of Taxation as well as support packages of tax exemption, reduction and extension to help businesses overcome difficulties.

According to the Director of the Hanoi Tax Department Mai Son, in order to bring support policies to businesses and promote their effectiveness in practice, Tax Department had asked each tax officer and each department to actively send emails, directly call to businesses to help them declare, implement tax reduction and extension.

At the same time, the Hanoi Tax Department has organized online conferences to remove difficulties for 100% of businesses in the area (nearly 180,000 enterprises). Tax authorities also focus on classifying and assessing difficulties in which districts, departments and agencies to solve them in a timely manner, thereby helping organizations and individuals feel secure to focus on production and business activities.

Along with the support of all levels, sectors and tax authorities, businesses in a number of industries and economic areas in Hanoi have had effective solutions for adaptation, so that their production and business activities had a remarkable growth rate and made up for shortfalls in some taxes, making an important contribution to the 2021 revenue collection results.

When policy really comes to life

Many enterprises have restored production activities and have achieved relatively positive business results, especially at the end of the year. The supportive policies of the State as well as the efforts of enterprises in overcoming difficulties have contributed positively to the state revenue collection.

According to Deputy General Director of Taxation Vu Xuan Bach, in 2021, the Covid-19 pandemic has greatly affected the socio-economic situation of Vietnam. However, the Government and sectors have always closely accompanied businesses, performing the "dual tasks" of both focusing on pandemic prevention and promoting production and business.

Following the direction of the National Assembly, the Government and the General Department of Taxation has advised and submitted to the Ministry of Finance, synchronously deploying solutions in both tax policy and tax management to respond to the Covid-19 pandemic.

Accordingly, the Tax sector advised the Ministry of Finance to submit to the Government for promulgation Decree No. 52/2021/ND-CP on extending the deadline for payment of value-added tax, corporate income tax, personal income tax and land rent in 2021 for businesses, organizations, business households, and business individuals negatively impacted by the Covid-19 pandemic. As a result, as of November 23, 2021, the Tax sector has received and resolved to extend the tax payment deadline for nearly 140,000 taxpayers. The total amount of tax and land rent extended under Decree No. 52/2021/ND-CP is over VND92,000 billion.

Regarding tax exemption and reduction, the Tax sector has advised and submitted to competent authorities to issue a number of policies such as: Resolution No. 1148/2020/UBTVQH14 dated December 21, 2020 on reducing environmental protection tax for aviation fuel; submit to the Prime Minister for promulgation Decision No. 27/2021/QD-TTg on the reduction of land rent in 2021 for subjects affected by the Covid-19 pandemic, in which reducing 30% of payable tax amount in 2021 for leaseholders who are directly leasing land from the State under a decision or contract of a competent state agency in the form of annual land rental payment.

The General Department of Taxation has advised the Ministry of Finance to issue Circular No. 47/2021/TT-BTC dated June 24, 2021 on reducing the collection of more than 30 fees and charges to support and remove difficulties for businesses, ensuring social security to cope with the Covid-19 pandemic, applied from July 1, 2021 to the end of December 31, 2021; submitting to the Government to report to the National Assembly Standing Committee for issuance of Resolution No. 406/NQ-UBTVQH15 on a number of solutions to support businesses and people affected by the Covid-19 pandemic.