The district with 5 hydropower projects in Nghe An proposes to allocate tax resources for the locality.

On April 23, the Provincial People's Council organized a supervision of budget collection in Tuong Duong district. Photo: Phuong Thuy

Tax on non-state industry, trade and services reduced

Deputy Head of the Culture and Social Affairs Committee of the Provincial People's Council Nguyen Thi Lan commented that according to the report, in the period of 2016 - 2018, the annual budget revenue of the district always reached and exceeded the estimate assigned by the province and the Resolution of the District People's Council. The total number of enterprises operating in the area tends to increase.

However, Ms. Lan expressed concern that the tax on non-state industry, trade and services has tended to decrease from more than 12 billion VND in 2016 to more than 7.7 billion VND in 2018.

Budget revenue results of Tuong Duong district in the period of 2016 - 2018. Technique: Huu Quan

Explaining this issue, Head of the Tax Department of Tuong Duong district, Vi Dinh Cat, said that for non-state industrial, commercial and service taxes in Tuong Duong district, currently, it mainly depends on 2% of basic construction projects.

In 2015 - 2016, the total investment capital for basic construction works was about 300 billion VND; but in the period of 2017 - 2018, the total investment capital for basic construction works decreased to about 100 - 120 billion VND, causing the total revenue from non-state industrial, commercial and service taxes to decrease.

Many newly registered businesses have stopped operating.

Mr. Ho Nghia Duc - Head of the Finance Department of Tuong Duong district admitted that the current situation is that many businesses have stopped operating or have just registered and stopped doing business.

One of the reasons leading to this situation, according to Mr. Duc, is that the recent hydroelectric flood discharge in 2018 left many serious consequences, causing many areas in the West of Nghe An to be deeply flooded, many businesses suffered losses, and business operations were delayed and suspended.

On the other hand, Mr. Duc also said that in Tuong Duong district there are up to 5 hydropower projects, but tax collection is not the district's responsibility.

The Head of the Finance Department of Tuong Duong district proposed that the Central Government should adjust policies to allocate a part of the budget from tax revenue of hydroelectric projects in the area, so that the district can carry out some social security tasks, be proactive in natural disaster prevention and environmental pollution treatment.

Activities of the one-stop department at the Tax Department of Tuong Duong district. Photo: Phuong Thuy

Chief of the Provincial People's Council Office Pham Van Hoa acknowledged the efforts of the Party Committee, the government, and the Tax Department of Tuong Duong district in tax management in recent times. In particular, Tuong Duong has achieved the district's annual budget revenue target higher than the target assigned by the province.

The Chief of Office of the Provincial People's Council also requested the District People's Committee and the Tax Department of Tuong Duong District to strengthen coordination in disseminating policies for taxpayers; supervise tax collection publicity and attract investment into the area to increase tax revenue...