Nghe An Tax Department: Efforts to complete 2016 budget revenue estimate

(Baonghean) -2016 is the first year of implementing the Resolution of the 12th National Party Congress, the Resolution of the 18th Nghe An Provincial Party Congress, and the 5-year Socio-Economic Development Plan 2016 - 2020. Therefore, completing the task of collecting the state budget is extremely important, a premise and a driving force for implementing the task of collecting the budget in the following years.

Producing export goods at Haivina Kim Lien Garment Company (Nam Dan). Photo: Chau Lan

Overcoming difficulties

In 2016, the Tax sector entered into its political mission in a difficult context: high revenue collection plan, not many new businesses, natural disasters, and harsh weather. In addition, the marine environmental pollution incident severely affected the production and business of many enterprises, especially in the fields of trade, services, restaurants, hotels, catering, transportation, etc.

The State's ban on exporting raw white stone also caused mineral mining and processing enterprises to stagnate in production. Some new policies (effective from January 1, 2016) reduced revenue sources such as: The general corporate income tax rate was reduced from 22% to 20%, and enterprises enjoying preferential corporate income tax rate of 20% were reduced to 17%. Harsh weather and prolonged heat caused widespread drought, reducing commercial electricity output and reducing the amount of tax payable by hydropower enterprises.

Revenue from some key enterprises is lower than the same period last year, affecting the province's state budget revenue. In addition, many enterprises have large tax debts and are no longer in production or business. Enterprises in Nghe An province are mainly small and medium-sized enterprises, micro-enterprises, and some large projects are in the investment phase, so they have not yet paid to the budget or are receiving value-added tax refunds.

Meanwhile, the 2016 state budget revenue estimate assigned by the Ministry of Finance, the Provincial People's Council and People's Committee is very high, increasing by 31% compared to the 2015 estimate and increasing by 1,400 billion VND compared to the 2015 implementation. Implementing the annual plan is really not easy.

However, under the attention and direction of Party committees at all levels, local authorities, the Ministry of Finance, the General Department of Taxation and close coordination of functional sectors; the spirit of overcoming difficulties in production and business of the business community and the efforts of nearly 1,200 civil servants and employees of the Nghe An Tax sector, the first 8 months of 2016 have achieved certain results.

Comrade Nguyen Dinh Hoa, Director of the Tax Department, directed an online meeting with the Branches.

As of August 31, 2016, the domestic revenue balance in the province reached 6,022 billion VND, equal to 74% of the Central budget estimate, 67% of the People's Council budget estimate and equal to 117% compared to the same period.

Some revenue items grew strongly compared to the same period: Revenue from Environmental Protection Tax, 8 months reached 479 billion VND, equal to 84% of the estimate and increased by 218% over the same period; Land use fee revenue, 8 months reached 1,019 billion VND, equal to 157% of the Central estimate, 68% of the People's Council estimate and increased by 182% over the same period; Revenue from foreign-invested enterprises, 8 months reached 213 billion VND, equal to 68% of the estimate and 127% over the same period.

The budget collection progress of the Tax Departments is basically quite good compared to the estimate and increased compared to the same period last year. 14/21 tax departments' total revenue ensured the estimated progress and was higher than the same period in 2015.

However, some revenue items account for a large proportion but the revenue has not met the schedule, such as revenue from central state-owned enterprises in the first 8 months reached 59% of the estimate; revenue from local state-owned enterprises reached 66% of the estimate; revenue from industry, trade - services - non-state enterprises reached 65% of the estimate.

Main reasons: Hydropower enterprises lost more than 30 billion VND in revenue due to drought and prolonged heat, reducing commercial electricity output; beer enterprises lost nearly 60 billion VND in revenue due to reduced output (9 million liters); other key enterprises lost nearly 70 billion VND in revenue... In particular, the unmanaged tax revenue (other budget revenue and fixed revenue at the commune level) in the first 8 months only reached 45% and 58% of the estimate, requiring stronger and more synchronous coordination to increase this revenue source.

Tax industry fights against tax loss from petroleum business

Sprint phase solution

The task of collecting the State budget in the remaining months of 2016 is extremely heavy. In the coming time, the Tax sector will focus on overcoming difficulties, proactively implementing many drastic solutions, and determinedly ensuring that the State budget revenue reaches and exceeds the estimate as a premise for completing the tasks of 2016 and the following years. Specifically: The sector has proposed 6 key tasks and 16 solutions for the last months of the year.

Mineral water production at Nghe An Water Supply Company Limited. Photo: Chau Lan

In particular, focus on making drastic efforts to complete the budget collection task in the area according to Resolution No. 01/NQ-CP of the Government, Directive No. 22/CT-TTg dated June 3, 2016 on strengthening the direction and implementation of the financial and budget tasks in 2016, synchronously deploying tax management measures, including strengthening inspection and examination to combat tax losses, tax evasion and promoting the management of tax arrears; strive to complete the emulation targets and exceed the revenue estimate in 2016.

Continue to seriously implement new, revised and supplemented tax policies; implement action programs, implement Government resolutions on promoting administrative procedure reform, enhance support to resolve difficulties, problems and recommendations of enterprises under the direction of the Government, the Ministry of Finance and the General Department of Taxation. Implement tasks serving the development of domestic revenue estimates for 2017 - the first year of the budget stabilization period in accordance with the direction of the Prime Minister in Directive No. 21/CT-TTg and guiding documents of the Ministry of Finance and the General Department of Taxation.

Nguyen Dinh Hoa

(Nghe An Tax Department)