Nghe An: Budget revenue in the first 6 months of the year reached over 5,300 billion VND

On July 30, Nghe An Tax Department held an online conference to review tax work in the first 6 months of the year and deploy tasks and solutions for tax work in the last 6 months of 2018.

Mr. Trinh Thanh Hai - Director of Nghe An Tax Department directed local tax branches to synchronously deploy tax management measures. Photo: Dinh Nguyet

According to the report of Nghe An Tax Department, by the end of June 2018, the total budget revenue of the Department reached over 5,300 billion VND, equal to 49% of the Central budget estimate, 45% of the target estimate and increased by 7% over the same period.

Specifically, 8/16 revenue items achieved less than 50% of the assigned estimate: Revenue from central state-owned enterprises reached 33%; revenue from local state-owned enterprises reached 45%; foreign-invested enterprises reached 35%; revenue from non-state industry, trade and services reached 40%; environmental protection tax reached 44%; fixed revenue at commune level reached 45%; profit and dividend revenue reached 19%.

16/22 units achieved over 50% of the estimate.

Song Lam Cement Factory (Do Luong). Photo: Document

However, the state budget revenue in the first 6 months of the year was lower than the progress of the budget implementation. Revenues related to the production and business situation of enterprises accounted for a large proportion of the total state budget revenue, such as: Central State-owned enterprises, foreign-invested enterprises, and the non-state industrial, commercial and service sector.

The amount of tax arrears as of June 30, 2018 compared to December 31, 2017 increased by 29%. There are 21/22 units with total tax arrears increasing, of which 10 units increased by over 20%; some localities have high debt increase rates such as: Ky Son, Anh Son, Con Cuong, Do Luong, Quy Hop, Quynh Luu, Yen Thanh...

At the conference, the delegatesanalyzed the reasons for the limited state budget collection results in the first 6 months of the year: Production and business activities of enterprises still face many difficulties; many enterprises have large tax debts, in fact no longer have production and business activities but do not complete dissolution or bankruptcy procedures or still exist but are slow to comply with tax debt payment...

In addition, some tax mechanisms and policies are still lacking in synchronization, not completely suitable to the context and developments of the situation, and are frequently amended and supplemented, causing difficulties for taxpayers as well as tax authorities in implementation.

At the same time, delegates exchanged and discussed solutions to resolve difficulties and obstacles in performing tax debt collection tasks and tax debt enforcement in a number of fields such as: Mineral and resource exploitation, business premises rental, motorbike trading, transportation business households, etc.

Delegates attending the conference. Photo: Dinh Nguyet

In the coming time, the Provincial Tax Department will direct local tax branches to closely follow the Government's Resolutions and action programs of the Ministry of Finance and the General Department of Taxation, reform administrative procedures, facilitate taxpayers, and support startups.

At the same time, direct departments and branches to coordinate with sectors to synchronously deploy tax management measures, including strengthening inspection and examination to prevent tax losses and tax evasion and promoting tax arrears management; completing debt collection targets and inspection and examination targets, striving to exceed the 2018 state budget revenue estimate; organizing the development of the 2019 state budget revenue estimate and developing a medium-term financial and budget plan for the 2019-2021 period to ensure compliance with collection laws and in line with economic growth potential in each locality.