Tax sector’s revenue exceeded estimate in difficult context of Covid-19 pandemic

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The view of the conference. Photo: T.L

Tax revenue exceeded estimate 1.9%

In 2020, the Covid-19 pandemic has impacted on all sectors, including Vietnam’s sectors such as: import, export, and transportation (especially air transport), automobile manufacturing, electronics manufacturing, computers, textiles, footwear, tourism, services, catering, accommodation, Ithas putmillions out of work or caused their incomes to drop sharply.

In addition, natural disasters and floods have caused great damage in the Northern mountainous provinces, the Central region and the Central Highlands, negatively affecting production and life and the results of State budget revenue.

Facing this situation, the General Department of Taxation has actively assessed the impact of natural disasters and diseases on the State budget revenuesunder the growth scenarios; advised the Government and the Ministry of Finance on plans to actively balance the State budget in 2021.

According to the Director General of the General Department of Taxation Cao Anh Tuan, resulting from the positive solutions, the tax revenue in 2020 managed by the General Department of Taxation reached VND1,278,649 billion or 101.9% of the estimate (exceeding VND24,349 billion), and exceeded VND175,849 billion compared to the estimated revenue reported to the National Assembly.

Of which, revenue from crude oil reached VND34,576 billion, or 98.2% of the estimate. Domestic revenue reached VND1,244,073 billion, or 102% of the estimate (exceeding VND24,973 billion), exceededVND173,773 billion compared to the estimated revenue reported to the National Assembly.

The revenue of 55 of 63 localities is expected to exceed the estimate, of which some localities’ revenue exceeded 10% such asNinh Binh, Yen Bai, Phu Tho, Ha Tinh, Thua Thien Hue, Lao Cai. Forty-oneof 63 localities have achieved revenue growth.

According to Tuan, the results stem from the great effort of the whole political system and local authorities in implementing the dual goal of fighting thepandemic and socio-economic development. From the third quarter, the restoration of the economy and the great effort of businesses have helped the Tax revenue in 2020 exceed the estimate.

Closely monitor the “health” of businesses

According to the General Department of Taxation, in 2021, the National Assembly has assigned the Tax sector to collect VND1,116,700 billion, of which, the revenue from crude oil is VND23,200 billion; domestic revenue is VND1,093,500 billion.

The leader of the General Department of Taxation said that this is a formidable task amid the complicated and unpredictable development of the Covid-19 pandemicand low economic growth.

To perform State revenue collection in 2021, the Tax sector will continue to effectively implement solutions under the Government’s direction in Resolution No. 01/NQ-CP and Resolution No.02/NQ-CP;and the Ministry of Finance’s direction.

Tax authorities at all levels will review all revenue sources in 2021, and assign the desired revenue target as a basis for tax authorities at all levels to implement it from the beginning of the year. Closely forecast the progress of revenue collection andassessin detail each locality, tax, review and accurately identify potential revenue sources, loss-making sectors and taxes to promptly propose solutions on policies for effective revenue collection and management.

According to Tuan, the Tax authority will closely monitor the “health” of businesses to continue to implement support solutions deployed in 2020, advise the Ministry of Finance to submit to the Government for promulgation of solutions to remove difficulties and support taxpayers in 2021.

The General Department of Taxation will also continue to improve the provisions of the Law on Tax Administration No.38/2019/QH14 and review, study, amend and supplement legal documents on tax and tax administration towards covering all revenues, improving management capacity, preventing fraud, tax evasion, and State revenue loss.

In 2021, the Tax sector will strengthen revenue management, anti-revenue loss, and promote the collection of outstanding tax debts, including diversifying the methods of publicity and support for taxpayers; accelerate the inspection and control of tax declaration and payment; strictly manage tax refunds in accordance with the law. The Tax sector also aimsthat the total tax debt as of December 31, 2021 will not exceed 5% of the total State revenue in 2021.

Also, in 2021, the Tax sector will take advantage of the participation of the entire political system in directing local levels and branches to coordinate with tax authorities in revenue management, anti-revenue loss, advising the competent authorities to continue maintaining and enhancing the role of the Steering Committee for anti-tax losses and outstanding tax debt collection, promptly remove difficulties and problems for businesses and people, promote investment, production and business and urge taxpayers to correctly, fully and promptly pay their tax to the State budget.

Speaking at the conference, Minister of Finance Dinh Tien Dung said that in 2021, the Ministry of Finance will continue to assess the impacts of the Covid-19 pandemic to propose solutions for taxes, fees and charges to remove difficulties and facilitate the production and development of people and businesses.

Minister of Finance Dinh Tien Dung assigns the General Department of Taxation to collect revenue in 2021 exceeding 5% of the estimate.