The "health" of enterprises affects state budget revenue

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The Tax Department is focusing on conducting extensive and comprehensive propaganda on the policy of tax payment extension. Photo: Thuy Linh

Although the general overview of budget revenue managed by the General Department of Taxation in the first four months of the year achieved good progress in revenue compared to the estimate and growth over the same period last year, before the stressful situation of the current Covid-19 pandemic in Vietnam, it is forecast that the state budget collection of the tax sector will be strongly affected.

Budget revenue tends to slow down

According to General Director of Taxation Cao Anh Tuan, the accumulated total budget revenue until May 13 reached VND507,409 billion, equaling 45.4% of the estimate.

Notably, the corporate income tax finalization data in 2020 shows that the production results of enterprises have decreased in most indicators from revenue to profit, and the amount of corporate income tax paid to the state budget compared to 2019. Along with that, due to the implementation of Decree No. 52/2021/ND-CP on the extension of tax and land rent (expected value-added tax amount to be extended in April is about VND10,500 billion; corporate income tax is about VND16,000 billion), meaning these two taxes in April only reach 7.1% and 8.3% of the estimate, respectively.

Faced with that situation, in addition to the implementation of tax policies in coordination with financial policies to contribute to the realization of the dual goals of effective disease prevention and economic recovery, but still ensuring to complete and exceed the state budget collection task in 2021 at the highest level, General Director of Taxation Cao Anh Tuan has directed tax authorities at all levels to continue to organize and urge state budget collection for a number of items, central budget revenues (crude oil, natural gas, residual profits and distributed dividends, money for granting mineral exploitation rights, collection of central land use levy, fees and charges belonging to the central budget, etc.)

The General Department of Taxation requested the Tax agency to synchronously and drastically implement solutions to perform the state budget collection task in 2021, in which the focus is on reviewing, researching and submitting to competent authorities for amending, supplementing and completing tax legal documents and guiding documents of the Law on Tax Administration in the direction of covering all revenue sources, improving tax management capacity for collection agencies, preventing fraud, tax evasion, loss of revenue and tax arrears, as well as implementation of electronic tax management.

At the same time, the tax sector continues to promote the application of information technology in management, creating a favorable and transparent environment for taxpayers to fulfill their obligations to the state budget.

Listen to "health" of the business

Facing the development of the Covid-19 pandemic, many tax departments across the country have adjusted a number of tasks and solutions for budget collection.

Bac Ninh is one of the localities with many Covid-19 cases and Bac Ninh City has also implemented social distancing measures. In order to proactively respond to the Covid-19 pandemic, the People's Committee of Bac Ninh province has directed all levels and sectors to continue effectively implementing solutions to prevent the pandemic, support and remove difficulties for businesses in the localities, promoting economic growth, creating conditions for increasing state budget revenue.

Bac Ninh Tax Department has assigned units to make revenue estimates to closely grasp the production and business situation in the area, forecast the implementation of state budget revenue estimates in accordance with the schedule. At the same time, the Tax Department is organizing the reception and settlement of administrative procedures online; promptly propagate the content of Decree No. 52/2021/ND-CP on solutions to support taxpayers to extend the tax payment time, some taxes that are difficult due to the impact of the Covid-19 pandemic through email and on provincial mass media.

It is expected that the unit will extend the deadline for paying tax and land rent, according to Decree 52/2020/ND-CP of the Government, which is over VND3,660 billion.

At the Lao Cai Tax Department, this unit determined that in addition to synchronously implementing tax management measures, strengthening inspection and checking against tax loss, in the following months, it will regularly collect information on the financial situation, production and business activities of taxpayers in order to have specific solutions in each case, ensuring the correct, sufficient and timely collection of the taxpayer's tax obligations to the state budget, striving to exceed the assigned budget revenue estimate at the highest level.

At the same time, closely following developments in the economic situation, assessing and analyzing the possibility of increasing or decreasing revenue in the implementation of new policies of the Government such as: consumer demand stimulation, exemptions and reductions, incentives, to promptly advise and submit to all levels measures to direct and promptly remove difficulties and obstacles to ensure economic growth and social security.

Lao Cai Tax Department will also closely coordinate with local departments and agencies to implement policies on macroeconomic regulation, especially policies on exemption, reduction, extension, etc. to create the most favorable conditions for businesses, creating momentum for production and business development, contributing to economic growth and overcoming the difficult period affected by the Covid-19 pandemic.