The Tax Industry needs to advise on solutions to create new and more stable sources of revenue.

Tax collection exceeds the legal estimate

On the morning of January 18, Nghe An Tax Department held a conference to summarize tax work in 2018 and discuss solutions to complete budget collection in 2019. Attending were comrade Le Ngoc Hoa - Vice Chairman of the Provincial People's Committee, leaders of the Department of Finance, State Treasury, leaders of branches, departments and offices.

Overview of the 2018 Tax Department's year-end conference. Photo: Quang An

In 2018, with the great efforts and determination of the whole industry, the close direction of the provincial leaders and the General Department of Taxation, Nghe An's domestic budget revenue reached 12,230 billion VND, equal to 114% of the ordinance estimate, 107% of the People's Council estimate and 100% compared to the same period. In which, the domestic revenue calculated by the balance minus land use fees reached 9,005 billion VND, equal to 95% of the estimate and 107% compared to the same period in 2017.

Results by region and tax: 11/16 revenue items exceeded the estimate, increasing by 1,692 billion VND. Some revenue items increased such as: Environmental Protection Tax reached 1,158.8 billion VND, equal to 105% of the estimate and increased by 18% over the same period; land revenue reached 3,225 billion VND, increased by 148% of the estimate... 21/21 Tax Departments completed the estimate.

Vice Chairman of the Provincial People's Committee Le Ngoc Hoa directed: "Nghe An Tax Department continues to take the lead in administrative reform, focusing more on removing difficulties for businesses." Photo: Quang An

Regarding the tax work in 2019, Nghe An Tax Department will focus and strive to complete 5% of the 2019 State budget collection task assigned by the Provincial People's Council, which is 11,789 billion VND; Implement the main tasks and solutions of the Government's direction and management on the implementation of Resolution No. 01/2019 of the Government on the Socio-Economic Development Plan and State Budget Estimate for 2019; Strengthen macroeconomic stability, restructure the economy associated with growth model innovation; resolutely implement administrative reforms, encourage innovation, start-ups, business development, and promote economic growth.

Nghe An Tax Department also accelerated the implementation of the tax system reform plan for the period 2016 - 2020 approved by the Minister of Finance, continued to review and reform tax administrative procedures; strengthened discipline, order, and raised the sense of responsibility of civil servants in performing public duties and effectively implemented anti-corruption and thrift work.

Director of Nghe An Tax Department Trinh Thanh Hai speaks at the conference. Photo: Quang An

Administrative reform, removing difficulties for businesses

In order for the Tax sector to achieve high results in 2019, the solutions proposed by the sector are: Synchronously deploy solutions to complete the task of collecting the State budget; Timely and effectively implement the Government's directive measures on key solutions to stabilize the macro-economy, drastically reform administration, encourage innovation, start-ups, develop enterprises, promote economic growth; Accelerate the process of reforming and modernizing the tax system, continue to review and reform tax administrative procedures.

At the conference, the presentations focused on analyzing solutions to prevent tax losses in restaurant and hotel businesses, private transport taxes, environmental resource taxes, mergers, and staff...

Masan's fish sauce production line in the Southeast Economic Zone. Photo courtesy

Speaking at the conference, comrade Le Ngoc Hoa - Vice Chairman of the Provincial People's Committee pointed out the outstanding results of Nghe An in 2018, in which he praised the very important contributions of the Tax sector. However, comrade Le Ngoc Hoa also said that the revenue structure in Nghe An is not reasonable and not sustainable, the increase indicators are mainly from land fees. The Finance and Tax sectors of Nghe An need to have mechanisms and solutions to improve the structure and nurture revenue sources, create new, more important and stable revenue sources, and ensure sustainable budget revenue and expenditure.

Comrade Le Ngoc Hoa also requested Nghe An Tax Department to continue implementing effective tax debt collection solutions, resolutely against businesses with lingering debts as well as some businesses that evade taxes.

Agreeing with the solutions to boost budget collection in 2019, comrade Le Ngoc Hoa hopes that the Tax sector will compete to complete the plan right from the first days and months of 2019, especially taking the lead in administrative reform./.