Proposing solutions to prevent tax loss and arrears in Quy Hop district

Attending the meeting were comrade Cao Thi Hien - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Council and members of the Provincial People's Council's supervisory delegation.

Control of business households

Based on the actual supervision of An Vinh Mineral Processing Company, Quy Hop Town People's Committee, members of the supervision team listened to the opinions of the Tax Department, Quy Hop District People's Committee and raised some concerns.

Concerned about tax collection in the area, Chief of the Provincial People's Council Office Pham Van Hoa acknowledged and assessed Quy Hop as one of the districts that always exceeds the estimate assigned by the superior. However, the Quy Hop District Tax Department also needs to clarify the debt situation in the past time; the role of the commune tax advisory council; the total number of business households in the area and the number of business households managing taxes in the area...

Enterprises come to transact at the one-stop shop of Quy Hop District Tax Department. Photo: Phuong Thuy

Regarding business license tax, comrade Nguyen Quoc Tri, specialist of the Tax Inspection Department - Nghe An Tax Department expressed that, in fact, business license tax is an issue to inspect and control business households in the area and create revenue for the state budget to establish a tax system.

Previously, if the tax was based on the income of the business household, now according to Decree 139/2016/ND-CP, for cases where the business household has a revenue of 100 million or less, it will not have to pay tax, creating conditions for people to develop the economy, such as 7 cases exempted from business license tax.

Regarding the work of tax collection authorization, Deputy Head of the Provincial People's Council's Legal Committee Tran Dinh Toan is concerned that in reality, many localities believe that the mechanism of tax collection authorization via post for business individuals paying taxes by lump sum method has many difficulties and problems, leading to an increasing debt of business households.

Therefore, it is necessary to compare the difference in efficiency before and after the implementation of postal tax collection authorization. In addition, to evaluate the legal compliance of enterprises in tax payment, the proportion of enterprises violating the law is how much of the number of inspected enterprises; clarify the number of complaints and lawsuits against enterprises in the past time.

Field supervision team of An Vinh Mineral Processing Company. Photo: Phuong Thuy

Prevent revenue loss and debt arrears

Also related to the tax collection delegation, Head of the Quy Hop District Tax Department Nguyen Xuan Hue said that, from the problems reported to superiors in the issue of adjusting policies to suit mountainous areas, the advantages of tax collection delegation through the post office cannot be denied. Because tax collection delegation will free up resources for tax officers to focus on performing other tasks more effectively; creating conditions for business households far from the area to fulfill their tax payment obligations more conveniently...

Besides, the task of collecting the budget of Quy Hop district in the past time is still difficult, the state budget revenue in the area depends on 80% of mineral exploitation and processing enterprises with erratic and unstable markets; enterprises cannot proactively find output for products, there are many risks. The State tax policy has many changes affecting the state budget collection in the area.

The Head of the Quy Hop District Tax Department also recommended and proposed to the Central Government to amend the policy to allow debts that are difficult to collect, not to charge late payment fees for these debts; recommended the Ministry of Natural Resources and Environment to revoke the Mineral Exploitation License at the request of the tax authority for enterprises with long-term tax debts, and fees for granting mineral exploitation rights licensed by the Ministry of Natural Resources and Environment.

Dong Cao Thi Hien - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Council concluded the working session. Photo: Phuong Thuy

Concluding the supervision session, Comrade Cao Thi Hien highly appreciated the efforts of the Tax Department's staff in directing, leading, and coordinating with agencies and departments on budget collection, tax debt collection; dialogue to remove difficulties and obstacles for businesses...

In particular, Quy Hop Tax Department has annually advised the Chairman of the District People's Committee to issue directives on increasing state budget collection; establishing a Tax Loss Prevention Team; establishing an interdisciplinary team to collect tax arrears... to promote efficiency in tax collection in the area.

In the coming time, the Vice Chairman of the Provincial People's Council suggested that Quy Hop needs to have solutions to effectively implement tax management as well as management of collection of fees for granting mineral exploitation rights, land rents for enterprises in the area; management of local budget collection; ensure transparency and fairness to achieve the highest efficiency in implementing local goals and tasks; promote Quy Hop's potential to increase tax revenue, avoid arrears and reduce revenue.