Tax management and collection in Dien Chau town are still inadequate.

On the morning of May 3, the delegation supervising the budget collection in Nghe An province from 2016 to 2018 had a meeting with the People's Committee of Dien Chau town. Comrade Cao Thi Hien - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Council chaired the meeting. Photo: Mai Hoa

According to the report of Dien Chau Town People's Committee, although the locality has advantages in transportation and trade, however, Dien Chau Town People's Committee only manages small individual businesses; revenue from granting land use rights is almost non-existent, leading to a small total budget revenue in the area. On average, each year is about 3 billion VND, accounting for 0.7% of the total revenue of the whole district.

Through monitoring, the Provincial People's Council delegation also pointed out many shortcomings in state management and tax collection in the area. That is, the review and establishment of tax sets for individual business households in the area did not ensure the correct and sufficient number of taxpayers.

One-stop department handles tax administrative procedures at Dien Chau District Tax Department. Photo: Mai Hoa

Specifically, according to statistics from the General Statistics Office, in 2017, the town had a total of 436 households with revenue of over 100 million VND/year (subjects required to establish tax records), however, the data provided by the Town People's Committee showed that only 136 households had established records. This shows that the establishment and management of tax payers is not strict and tax losses still occur.

In addition, the locality has not yet organized construction licensing, leading to loss of revenue in private housing construction; loss of revenue in the transport business sector. On the other hand, the collection of environmental protection fees has not been implemented by the locality and has not been collected by any subjects.

Vice Chairman of the Town People's Committee Nguyen Ngoc Son admitted that many households showed signs of tax evasion. Photo: Mai Hoa

Acknowledging the above-mentioned shortcomings and inadequacies, Vice Chairman of Dien Chau Town People's Committee Nguyen Ngoc Son said that in the area, there is still a situation where some businesses declare lower revenue than actual business; some businesses do not voluntarily declare.

In addition, there are still many households showing signs of tax evasion. On the other hand, the implementation of tax collection authorization for the Post Office still has many shortcomings.

Vice Chairwoman of the Provincial People's Council Cao Thi Hien delivered a concluding speech at the meeting. Photo: Mai Hoa

Concluding the meeting, Vice Chairwoman of the Provincial People's Council Cao Thi Hien requested that the locality pay attention to making annual revenue estimates close to reality, and at the same time have solutions to urge the collection of correct and sufficient sources, ensuring transparency and fairness among tax payers. Along with that, it is necessary to pay attention to leading, directing, encouraging and creating conditions for organizations and individuals to invest in production development and business expansion to nurture and develop stable revenue sources in the area.

The Vice Chairman of the Provincial People's Council also noted that the locality should have solutions to prevent revenue loss in the fields of private housing construction, transportation business, environmental protection fee collection; proactively coordinate with the Post Office to increase the efficiency of authorized collection activities, reduce tax arrears.