Irrecoverable debt is a great pressure for Tax sector

Mr. Nguyen Dai Tri

Could you please tell us about the result of revenue collection of Tax sector after 9 months of implementation?

According to the statistics of the Tax sector, in 9 months of 2018, the total revenue collection is estimated to achieve 962,500 billion VND, equal to 73% of current appropriation, increased by 13.7% over the same period, in that, total revenue collection managed by Tax authorities is estimated to achieve 785,051 billion VND, equal to 73.4% compared to current appropriation, equal to 113.6% over the same period. Revenue collection managed by tax authorities in the first 9 months achieved better results compared to other implementation results in recent years in both progress and speed (in the same period of the first 9 months in 2017, achieved 67.9% of the total collection of a whole year, increased by 13.7% over the same period; in 2016 reached 68.4%, increased by 8.6%; in 2015, reached 69.4%, increased by 9% over the same period).

The good implementation of the revenue management has contributed to accelerating the implementation of state revenue estimates, contributing to ensuring financial resources for budgets at all levels to take initiative in balancing state budget revenues and expenditures.

It could be said that the result of revenue collection of the tax sector in the past nine months was quite positive, contributing to the high achievement of total revenue in the first nine months of this year which reached the highest result in both progress and speed compared with the implementation of recent years. What solutions were implemented in order to help the tax sector achieve this result, sir?

In order to ensure the successful completion of the assigned political tasks, right from the beginning of 2018, leaders of the General Department of Taxation actively proposed four major solution groups with 20 specific measures and implemented drastically at all times of the year. In addition, we have assigned quarterly revenue estimates in a timely manner, in line with the economic growth of each area, and took it as a basis for tax branches to implement the task of revenue collection well.

The General Department of Taxation has coordinated with other sectors in order to deploy efficiently and effectively the Resolution No.01/NQ-CP of the Government on major tasks and solutions for implementing the socio-economic development plan and State Budget estimates in 2018; stepping up the implementation of e-government; promoting the dissemination of new laws and policies about taxation.

Another important thing was guidance and support of taxpayers about tax policies and administrative procedures; To intensify the inspection and control of tax declaration dossiers, promptly detect cases of improper declaration and insufficient tax arisen; To closely inspect and supervise the work of tax refund which was mainly electronic tax refund for the dossiers of export tax refund and investment; To step up the inspection and examination of taxes, prevent tax loss at the beginning of the year, prevent and step by step repel tax frauds and tax evasion; To drastically deploy the management of debt collection, apply measures to urge and coerce the collection of tax debts strictly in accordance with regulations.

Looking at the statistic presented by the Ministry of Finance, the result of State Revenue collection was good. Could we accomplish the target assigned by the National Assembly, sir?

At this point of time, with the positive signals, we also believed that state revenue collection would complete the assigned current appropriation, including central revenue collection. And the Minister of Finance has set a target for the whole sector to collect and exceed the minimum estimate by 3%. That was the goal we have been striving for.

In the state revenue collection, the prevention of tax loss and tax debt collection are two important tasks. Recently, how did the Tax sector deploy these two tasks, sir?

Besides the proper collection and in time collection of revenues into the state budget, we always focus on two tasks, which were inspection, examination and recovery of tax arrears.

Regarding to the inspection and examination, in 9 months, the tax authorities have carried out 63,665 inspections, with the total tax increase through inspections was 11,273.83 billion VND. By implementing measures to urge tax debts, we have recovered 25.382 billion VND of tax debt.

Along with that, the debt management also implemented synchronously and drastically in accordance with the law, especially with enterprises who intentionally delay to pay debts. However, in fact, this work has faced difficulties. It reflected in the total tax debt of the tax sector that was nearly 83,000 billion VND as of 30/9/2018, in that the debt that is not able to be collected totals over 43 trillion dong, including debt and late payment. This was a great pressure for the tax sector because the fine for late payment of 0.03% per day was very large. However, we also determined that collecting tax debts is a focal task that needed to be implemented drastically, regularly and continuously by various measures with the support of other sectors and authorities at all levels of the provinces.

Thank you so much!