Solutions for revenue collection in the last six months of the year.

(Baonghean)In 2013, the economic downturn increasingly affected businesses, bad debts rose, and the real estate market was sluggish. These factors significantly impacted the city's budget revenue. Vinh City's budget revenue for the first six months of the year was estimated at 353.5 billion VND, reaching 37.3% of the People's Council's projected target and 103.5% compared to the same period last year. Of this, revenue from land use rights fees was 51.2 billion VND, reaching 16.01% of the projected target and 52% compared to the same period last year. Budget expenditure also only reached 41.6% of the plan.

According to Mr. Phan Van Viet, Head of the Vinh City Tax Department: The reason for the low revenue collection in the city is that revenue from land in general, and land use fees in particular, is very low due to the frozen real estate market. The department is currently managing land use fee collection for 40 projects from 35 investors, but has not collected a single penny since the beginning of 2013. Exploiting revenue from land auctions is difficult. Almost 100% of the businesses under the tax department's management are small and medium-sized enterprises (SMEs), facing many difficulties and operating inefficiently in 2013. The amount of tax declared and payable each month is decreasing, and corporate income tax declarations are very low, mainly showing losses. 410 businesses have temporarily closed their tax registration numbers. Meanwhile, tax arrears are increasing. The situation of bad debts, businesses absconding, and businesses disappearing is also escalating.

Revenue from the non-state industrial and commercial sector reached VND 155.3 billion, equivalent to 46.36% of the plan, a 15.6% increase compared to the same period last year, which is a positive result. Fees and charges totaled VND 6.3 billion, reaching 96.7% of the plan and 62.08% compared to the same period last year. Registration fees totaled VND 100.8 billion, reaching 56% of the plan and increasing by 63.88% compared to the same period last year. The city also reviewed and revised the environmental sanitation fee schedule, increasing it by VND 5.1 billion compared to the initial plan.

Despite the achievements, budget revenue in the first six months of the year still has some limitations: many revenue items are lower than planned and lower than the same period last year, such as land use fees and non-agricultural land use tax. Non-agricultural land use tax: 2.2 billion VND, reaching 14.8% of the plan; to date, 65,862 households out of 77,350 households have declared their taxes, reaching 85.1%; the amount of outstanding tax is large: 142 billion VND, accounting for 15.2% of the 2013 budget revenue plan.

Building new rural infrastructure in Nghi An, Vinh City.

Low revenue collection has impacted budget expenditure: Total expenditure for the first six months of the year is estimated at VND 310.4 billion, reaching 41.6% of the plan and 77.62% compared to the same period last year. Of this: Development investment expenditure was VND 63 billion, reaching 30% of the plan and 32.61% compared to the same period last year; recurrent expenditure was VND 246.2 billion, reaching 47.98% of the plan and increasing by 19.31% compared to the same period last year.

Budget expenditures ensured full and timely payment of salaries and salary-related benefits to employees, as well as social security, defense, and security policies, and provided basic funding for units and sectors to complete their assigned tasks. Savings were implemented according to the City People's Council resolution: 10.7 billion VND; savings for the last seven months of the year as stipulated by the Ministry of Finance: 5.6 billion VND. Budget expenditures were reduced by 6.867 billion VND through various stages of capital construction investment management, including: design and cost estimate appraisal: 2.615 billion VND; final settlement appraisal: 3.793 billion VND; contractor selection: 549 million VND. Regular budget settlement for 2012 was completed on schedule. Many cultural and artistic activities stalled due to budget shortages. Low budget revenue has resulted in a shortfall in the budget balance, failing to secure sufficient capital for capital construction investment. Furthermore, the progress of land compensation and construction for some projects remains slow. In most wards and communes, regular revenue targets have not been met.

The economic forecast for the last six months of the year still shows little positive change, and the remaining budget revenue and expenditure tasks for the year remain relatively challenging. The city strives to complete the targets set by the People's Council at the beginning of the year in the last six months: budget revenue: 593.8 billion VND, including: regular revenue: 325.3 billion VND; land use fee revenue: 268.5 billion VND; budget expenditure: 413.9 billion VND, including: investment expenditure: 147 billion VND, regular expenditure: 266.9 billion VND.

To ensure the completion of the 2013 state budget revenue and expenditure targets for the last six months of the year, Mr. Nguyen Xuan Sinh - Chairman of the City People's Committee - stated: The view of the City Party Committee and the City People's Committee is to focus on decisively directing efforts to complete the budget revenue collection task in the area. To ensure the completion of tasks and the payment of salaries, wards and communes must identify their responsibilities in tax collection, promote the collection of non-agricultural land use tax, and grant land use rights to the people. The city will organize meetings with the City Tax Department to encourage tax officials and staff to find effective solutions for budget revenue collection.

The city continues to maintain inter-agency inspection teams to collect outstanding budget debts, combined with inspections to recover vehicle registration fees for car and motorbike transfers... Review and adjust taxable revenue for businesses in the food and beverage, beer, soft drink, hotel, and karaoke sectors..., striving to bring an additional 1,000 households under management and registration in the third quarter, with an average tax increase of 25-30%. Implement tax assessment for households that do not declare or declare incorrectly... Continue to enforce internal tax collection through banks for 100% of businesses with tax debts through banks.

According to Phan Van Viet, Head of the City Tax Department: In addition to the above solutions, the Department will promptly implement tax reductions and extensions according to Resolution 02/CP and Circular 16, ensuring that the reductions are applied to the correct subjects and are transparent and open. They will review and thoroughly understand the subjects and revenue sources in the area, striving to increase revenue in areas with high potential, and vigorously implementing programs to combat budget revenue losses.