Unrecoverable tax debt of nearly 34,000 billion VND

Attending the conference were comrades: Tran Xuan Ha - Deputy Minister of Finance, Bui Van Nam - General Director of the General Department of Taxation. At Nghe An bridge point, there was comrade Trinh Thanh Hai - Director of Nghe An Tax Department and leaders of departments and branches attending the meeting.

According to the report of the General Department of Taxation, the tax sector's 2018 state budget collection task is 1,070,200 billion VND, of which revenue from crude oil is 35,900 billion, domestic revenue excluding oil is 1,034,300 billion; Land use fee is 85,900 billion VND; dividend and after-tax profit is 53,600 billion VND; domestic revenue excluding land use fee and lottery is 867,700 billion VND.

Panorama of the conference at Nghe An bridge. Photo: Quang An

Revenue in the first 6 months of 2018 managed by the General Department of Taxation is estimated at VND 526,347 billion, equal to 49.2% of the estimate, up 12.8% over the same period.

44/63 localities have achieved domestic revenue progress quite high compared to the estimate (over 50%). However, some localities have not ensured the progress of implementing the estimate, of which 12 localities achieved revenue below 48% of the estimate.

Regarding the inspection and examination work to prevent state budget loss, in the first 6 months of the year, tax authorities at all levels inspected 30,189 enterprises, reaching 33.84% of the yearly plan, equal to 107.1% of the same period in 2017.

The total tax debt of the whole industry is estimated at 80,134 billion VND as of June 30, 2018, an increase of 6,900 billion VND compared to February 31, 2017. There are 56/63 localities with total tax debt increasing.

Tax arrears of taxpayers who have died, gone missing, lost civil capacity, are involved in criminal liability, have self-dissolved, gone bankrupt, stopped, retired, or abandoned their business addresses (with no possibility of recovery) are nearly 34,000 billion VND, an increase of 8% compared to December 31, 2017.

In Nghe An, the total state budget revenue in the first 6 months of 2018 is estimated at 6,197.5 billion VND, reaching 48.8% of the estimate, up 10.2% over the same period. Budget expenditure in the first 6 months of 2018 is estimated at 11,438 billion VND, reaching 48.1% of the estimate.

At the conference, the General Department of Taxation identified tax tasks for the last 6 months of 2018. Closely following the direction of the National Assembly in Resolution No. 49/2018/QH14 on the 2018 State budget estimate, the direction of the Government in Resolution No. 01/NQ-CP dated January 1, 2018 on implementing the main tasks and solutions to direct the implementation of the Socio-Economic Development Plan and the 2018 State budget estimate, synchronously deploying tax management measures, including strengthening inspection and examination to combat tax loss, tax evasion and promoting tax debt management; completing debt targets and inspection and examination targets, striving to exceed the 2018 State budget estimate.

Officers of Vinh Tax Department working. Photo: Quang An

Organize the development of the 2019 state budget revenue estimate and develop a medium-term financial and budget plan for the 2019-2021 period according to the guidance in Directive No. 13/CT-TTg of the Prime Minister, Circular 54/2018/TT-BTC, ensuring compliance with revenue laws and consistent with the economic growth capacity of each locality.

Concluding the conference, Mr. Bui Van Nam - General Director of the General Department of Taxation acknowledged and commended the efforts that the tax sector units had achieved in the first 6 months of the year. In addition, he requested localities to effectively implement the program of building institutions and tax laws and policies to ensure fairness, focusing on tax collection efficiency. Localities strive to complete the 2018 budget revenue estimate and build the 2019 budget estimate. Seriously and effectively implement the 13 proposed groups of solutions.