Tax sector collects more than VND 12.3 thousand billion of tax debt by end of May

The Covid-19 pandemic affects to the debt collection of tax sector. Photo: Thùy Linh

According to the General Department of Taxation, the total amount of tax debts is VND 97,757 billion by the end of May. This amount of debt increased 0.5% over the same period in 2019 and up to 13.7% compared to December 31 last year.

The amount of recoverable debt is VND 52,830 billion (decreasing by 8.9% over the same period in 2019; up by 26% compared to December 31, 2019); the amount of irrecoverable debt is VND 44,927 billion (up by 14.3% over the same period in 2019; increasing by 1.9% compared to December 31, 2019).

According to the General Department of Taxation, debt management has been identified as one of the most important tasks by the General Department of Taxation. Therefore, from the beginning of the year, the General Department of Taxation assigned targets of debt collection to tax departments, striving to reduce the amount of tax debt to the lowest level. However, due to the Covid-19 pandemic, the Government issued Decree 41/2020/ND-CP on extending the deadline for tax payments and land rents to affected organisations and individuals. Therefore, the amount of tax debt in the first five months of 2020 tends to increase.

According to the General Department of Taxation, in May 2020, tax authorities actively implemented measures to urge debt collection and collected tax debts at December 31, 2019 and in April of 2020 estimated to reach VND 3,705 billion.

Thus, accumulated to May 31, 2020, tax debt collection is VND 12,378 billion, equal 29.5% of the recoverable debt as of December 31, 2019 and up 5.8%. compared to the same period in 2019. Collected from debt management measure is VND 8,262 billion, while collected from debt enforcement measure is VND 4,116 billion.

According to the General Department of Taxation, from now until the end of the year, along with the deadline extension of tax payments and land rent in accordance with Decree 41, as the pandemic has been controlled, the tax sector will continue to implement measures to strictly manage debt, ensuring the number of tax debts will decrease by the end of 2020.