Nghe An Tax Department: Pioneering in combating tax evasion in the petroleum business.

(Baonghean) - For decades, the practice of selling gasoline and diesel without invoices and the lack of transparency in gasoline and diesel business declarations have resulted in significant tax revenue losses. With dedication and responsibility, the Nghe An Tax Department has diligently researched and developed a plan to combat tax evasion in the gasoline and diesel business, and has successfully collected an additional 350 billion VND.

According to statistics, Nghe An province has nearly 400 petroleum businesses with over 540 operating gas stations.

Among the major petroleum businesses in Nghe An province, such as Nghe An Petroleum Company, PTS Nghe Tinh Transport Joint Stock Company, PV Oil, and the Military Petroleum Company, Nghe An Petroleum Company accounts for over 50% of the market share in the province, with 69 stores and 200 dealerships; the remaining more than 40% of the market share belongs to other petroleum distributors and retailers.

The General Planning Department of the Tax Bureau reported on the results of gasoline and diesel tax collection at the industry's year-end meeting.

The loss of tax revenue from the petroleum business is largely due to the fact that most individual consumers do not request invoices when purchasing gasoline and diesel. As a result, some businesses sell or supply these products to other businesses and organizations that require invoices for accounting purposes, thereby reducing their value-added tax (VAT) and corporate income tax (CIT) obligations. Authorities and relevant state management agencies have yet to implement effective measures to prevent this…

Faced with this reality, officials from the Nghe An Tax Department conducted research and were determined to "break through" this barrier. They coordinated with the Department of Science and Technology to find solutions for measurement, worked with the press to guide public opinion, and advised the Provincial People's Committee to direct the implementation of the Project to Combat Tax Evasion in the Gasoline and Oil Business in Nghe An Province by managing total meters at gas stations.

After a rather difficult period, including resistance from businesses and shops, with dozens of gas stations closing down and refusing to cooperate, the Nghe An Tax Department has achieved many results. In response to the Tax Department's determination to combat tax evasion, in May 2015, the Nghe An Provincial People's Committee approved a plan and assigned various departments and agencies to coordinate its implementation, with the Tax Department playing a key role.

Tax officials are checking the meters at gas stations to use as a basis for calculating taxes. Sealing gas stations with lead tags.

Monthly, the tax authorities record the readings on the main meters to determine the amount of gasoline and diesel sold and compare them with the taxpayer's declaration. During the recording process, if a damaged seal or malfunctioning main meter is detected, the Tax Department notifies the Sub-Department of Standards, Metrology and Quality to have it re-sealed. Based on the amount of gasoline and diesel sold, the Tax Department compares it with the supplier's input invoices. If there is a discrepancy, the Tax Department will impose penalties and collect back taxes and environmental protection fees. The Tax Department also established a standing team to handle related and unexpected issues related to this project. After the project's implementation, the consumption volume of gasoline and diesel businesses increased significantly. For many months, working closely with businesses in the area, the Tax Department sealed and recorded the readings on the main meters of gasoline and diesel measuring devices in 21 districts and towns, totaling nearly 1,200 pumps. The readings on the main meter are recorded and compared with the amount of fuel sold and the business's tax declaration to manage revenue and prevent tax evasion.

According to Mr. Duong Minh Duc, Head of the Yen Thanh Tax Department: In 2014, the gasoline and oil business in Yen Thanh district paid 169,440,000 VND in taxes, but in 2015, after sealing and stamping, the tax collected from this sector reached 510,346,700 VND, and in the first nine months of 2016, it reached 363,750,000 VND.

Throughout the province, after implementing the project, revenue from petroleum business increased, providing a basis for calculating higher taxes. In the first 10 months of 2016, the Nghe An Tax Department collected an additional 350 billion VND in taxes from wholesale petroleum businesses, including 309 billion VND in environmental protection tax.

Chau Lan