Nghe An expects to lose thousands of billions of dong in tax revenue in 2020
(Baonghean) - According to Nghe An Tax Department, in the first quarter of 2020, the production and business situation was very difficult, the beer, wine, food service, gasoline, and transportation industries were severely affected, including by the Covid-19 epidemic. Nghe An Tax Department is expected to lose thousands of billions of VND in revenue this year.
Many large businesses are heavily affected by Covid-19
The Covid-19 pneumonia epidemic is a real shock to the entire world economy, including Nghe An. According to the Tax Department, in the first quarter of 2020, for beer production enterprises: 3-month output reached 26.7 million liters (down 9.3 million liters compared to the same period in 2019), tax revenue decreased by 43 billion VND compared to the same period. In particular, Hanoi Beer Joint Stock Company has stopped production because the products produced cannot be consumed.
For manufacturing enterprises: Due to lack of input materials and export markets, some manufacturing enterprises operating in the fields of textiles, electronic components manufacturing, and Chinese enterprises are only operating at about 50-60% of capacity during the same period, with an estimated shortfall of about 40 billion VND.
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| The textile industry is facing difficulties in raw material sources. Photo: Lam Tung |
Textile factories such as Hoang Thi Loan, Halotexco, Haivina Kim Lien, Vinatex... are all facing difficulties due to unstable raw material sources, especially after March when raw material supply contracts have not been signed.
For businesses operating in the fields of hotel, motel, restaurant, and transportation services: Due to concerns about the spread of the epidemic, the number of customers has decreased sharply, revenue from businesses has only reached about 30% of the same period, with an expected loss of about 10 billion VND. Many businesses have stopped production and business. The director of Hop Manh Transport Company said that currently, the company's 70 tractor trucks are all at home.
Enterprises operating in the field of mineral exploitation and production, especially for stone resources, manufacturing and processing stone products such as superfine white stone powder, sawn stone for cladding... the main consumer markets are China, Iran, Hong Kong, Taiwan and Middle Eastern countries, also saw a 40% decrease in revenue compared to the same period, according to Ms. Nguyen Thi Trang - Head of the General Department of Estimates of Nghe An Tax Department, expected to reduce the amount paid to the state budget by about 10 billion VND.
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| Stone powder products also face difficulties in export. Photo: Thu Huyen |
At Nghe Tinh Port, Mr. Nguyen Danh Hai - Port Planning Department said that the impact of the Covid-19 epidemic until the end of the second quarter of 2020 (when the epidemic is controlled), the volume of goods passing through the port will decrease by 290,000 tons and continue to decrease in the coming time.
For individual businesses, the situation is not very bright. The government has just ordered the closure of all crowded services, banned gatherings of 20 people or more, due to concerns about the Covid-19 epidemic, so shops are deserted, many shops are closed. In some areas such as Vinh city, Cua Lo town, restaurants, motels, and eateries are almost all closed due to the lack of tourists, which will have a significant impact on this year's budget revenue.
Mr. Trinh Thanh Hai - Director of Nghe An Tax Department said that this year with many difficulties, Nghe An is expected to lose thousands of billions of VND in revenue. Of which, beer alone has decreased by 750 billion VND.
Assess the impact and have timely solutions.
Implementing the direction of the General Department of Taxation in Official Dispatch No. 1021/TCT-DT dated March 11, 2020, of the People's Committee of Nghe An province on assessing the impact of state budget revenue due to the impact of the Covid-19 epidemic, the Nghe An Provincial Tax Department is requesting departments and tax branches to overcome difficulties and synchronously deploy solutions.
First, review all taxpayers in the area affected by reduced or increased revenue. Closely monitor the development of production and business of taxpayers affected by the epidemic, organize assessments, determine the specific level of impact of the Covid-19 epidemic on each industry, field, and taxpayer, and synthesize the level of impact on the state budget revenue.
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| Tourism businesses have been severely affected by the Covid-19 pandemic, with most activities being canceled. Photo: Document |
For key enterprises located in the petroleum, beer, wine, tourism areas, etc., it is recommended that the Tax Departments and Branches, in addition to assessing the impact of the epidemic, also assess the impact of Decree 100/2019/ND-CP on administrative sanctions for violations in the field of road and railway traffic to report to superiors.
For markets and business households: Organize a review and survey of specific revenue by industry for individual business households in the area affected by the Covid-19 epidemic to seek opinions from the Tax Advisory Council and Market Management Board to consider and process tax reduction applications in accordance with the provisions of the Law on Tax Administration and its implementing guidelines.
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| Many stores closed or transferred due to poor business. Photo: QA |
Departments and units regularly disseminate and propagate the State's support policies and evaluate the impact on the State budget revenue immediately after the policies are issued.
Mr. Trinh Thanh Hai - Director of Nghe An Tax Department added: Immediately after the Covid-19 epidemic is controlled, the whole industry will drastically and synchronously deploy solutions according to the direction of the superiors, which is to focus on removing and solving difficulties and obstacles for businesses, improving the business environment, creating favorable conditions for businesses to develop stably and firmly, attracting investment, supporting businesses to innovate and restore production and business activities.
Continue to reform and modernize the tax system, simplify tax administrative procedures, maintain electronic tax declaration, payment, refund, and electronic invoice services. Ensure the IT system operates 24/7 to support taxpayers in fulfilling their obligations to the State budget from registration, declaration, tax payment, and electronic refund without having to go directly to the tax authority.
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| Applying technology to production at NASU Sugar Factory. Photo: Tran Chau |
The Tax Department will closely coordinate with the Police, Customs, and Market Management agencies to strictly control commodity prices, combat smuggling, trade fraud, counterfeit goods, and poor quality goods, thereby preventing budget losses.
Strictly review taxpayers' tax declarations before conducting inspections and checks at taxpayers' headquarters. Do not organize periodic inspections in 2020 for businesses that do not show signs of violations. However, do not let businesses take advantage of this policy to violate the law.
Strengthen coordination with agencies, departments, branches and units within the Tax sector in sharing information and experience to more effectively manage e-commerce activities and online business such as Facebook, Zalo, YouTube, etc. to prevent revenue loss, expand the tax base, and increase revenue for the state budget....
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