Revenue collection of tax sector steps into hard times

the task of State revenue collection in May and subsequent months would be very difficult due to the impact of Covid-19 pandemic.

According to latest figures from the General Department of Taxation, the revenue collection of the central in the first four months of 2020 was estimated at VND 201,400 billion, equivalent to 33.9% of current appropriation, 102.8% over the same period. Along with that, local budget revenue was estimated at VND 225,361 billion, 34.1% of the estimateand 100.4% of the same period.

According to the General Department of Taxation, revenue collection over months has shown signs of decreasing due to the impacts of the Covid-19 pandemic, and revenue collection fell deeply in April.

Specifically, some major sources of revenue collection had a rapid decline such as value added tax (VAT) from 8% in the fourth quarter of 2019, it increased by 3.2% in the first three months of 2020, but it declined by 48.8% in April due to the pandemic and implementing the deadline extension of VAT payment in April for some industries. Adding the accumulated figure in April, VAT has dropped by 9.3% over the same period.

Besides that, special consumption tax from the rate of 9.5% in the fourth quarter of 2019, it decreased by 2.1% in the first three months of 2020 and down by 22.8% in April. Accumulated across four months, this tax has decreased by 7.2%.

Notably, according to the General Department of Taxation, corporate income tax increased by 15.6% in December 2019 then increased by 16.1% in the first three months of 2020, but it decreased by 55.6% in April. Thus, after four months, the corporate income tax has decreased by 7.3% over the same period.

The General Department of Taxation stated the task of State revenue collection in May and subsequent months would be very difficult in the context of performing dual tasks that were supporting taxpayers affected by the pandemic and ensuring State revenue collection, contributing to completing national financial safety and security goals.

Therefore, the General Department of Taxation requested tax authorities to continue to monitor and urge the progress of State revenue collection in each field, taxes and geographical area. At the same time, preparing a plan of revenue collection estimation in 2020 based on a new scenario due to the impact of the Covid-19 pandemic.

In particular, to fullfill the task of supporting taxpayers affected by the pandemic, the General Department of Taxation requested departments/units review databases, communicate and update the subjects subject to receiving assistance under the direction of the Prime Minister in Decree No. 41/2020/ND-CP and Resolution 42/2020/NQ-CP.

For inspection and examination, apart from strictly following directives of the Prime Minister and the General Department of Taxation on inspection and examination activities in the context of the pandemic, the General Department of Taxation also requested the Department of Inspectorate and tax inspection research the implementation electronic inspection on the basis of centralised data exploitation at tax authorities, restrict inspection and examination of databases at taxpayers' offices.

Besides supporting taxpayers affected by the Covid-19 pandemic, tax authorities at all levels should also pay attention to deploying measures to combat revenue loss, avoiding some subjects taking advantage of the policies of the State to intentionally delay paying tax and tax arrears.

The General Department of Taxation requested units urge the implementation of State revenue collection for some central revenues (crude oil, natural gas, collection of granting mineral exploitation rights and collection of land use levies, etc). At the same time, continue to monitor and report on the impact of State revenues due to the Covid-19 pandemic and implementation of Decree 100/2019/ND-CP of the Government on prevention of alcohol harms.

General Director Cao Anh Tuan also noted progress of developing decrees stipulating the implementation of the Law on Tax Management No. 38/2019/QH14 and circulars guiding the implementation of the decree to ensure synchronisation with validity of the Law on Tax Management No. 38.