Managing transportation vehicles: Many challenges remain.

(Baonghean) - In recent years, the transportation business has been developing rapidly. However, managing and collecting taxes in this sector still faces many difficulties...

A truck with an extended cargo bed is loading acacia wood in Nghia Dan district (photo taken at 3 PM, October 2, 2014).

Avoiding inspection...

Outraged by the problem of trucks carrying timber from Laos flooding the roads in the area, a young official in Tam Thai commune (Tuong Duong district) provided us with a list of eight vehicles that he described as "outdated, evading inspection, unsafe, and polluting." The official stated: "During the timber season from Laos, hundreds of outdated tractor-trailer trucks are parked along National Highway 7, near Na Tong village in Tam Thai commune, creating traffic hazards and environmental pollution. This is a list of some vehicles I compiled at a timber yard in Na Tong village. I would appreciate it if you could help me verify this through the relevant authorities. If these vehicles are indeed evading inspection, please speak up to help the people so that the authorities have grounds to take action..."

Through the authorities, we have identified that among the 8 vehicles listed by the Tam Thai commune officials, 4 vehicles have expired inspection certificates, including: a Hyundai truck with license plate 37C-03155T owned by Dang Van Thang, residing in Hamlet 3, Van Son commune, Do Luong district, inspected on January 27, 2014, with an inspection deadline of April 26, 2014; and a Hyundai truck with license plate 37S-7527 owned by Tran Huu Hai, residing in Hamlet 8, Thuan Son commune, Do Luong district, inspected on January 27, 2014, with an inspection deadline of April 26, 2014. A Hyundai truck with license plate 37H-5623, owned by Nguyen Cong Ha, residing in Hamlet 11, Trang Son Commune, Do Luong District, was inspected on February 7, 2014, with a re-inspection deadline of May 6, 2014; a Hyundai car with license plate 37C-025.45T, owned by Bui Thi Dieu Thuy, residing in Tien Thanh Hamlet, Nghia Hoan Commune, Tan Ky District, was inspected on February 7, 2014, with a re-inspection deadline of May 6, 2014.

Due to concerns about the problem of oversized and overloaded trucks damaging the roads, some officials and residents in the Phu Quy area provided us with a list of nearly 100 specialized vehicles used for transporting sugarcane, timber, and other goods. According to those who provided the list, these are modified trucks with extended cargo beds carrying excessive loads that are rampant in the area. Because the number was so large, we only selected 15 vehicles from the top down for inspection. Among these, 8 vehicles had expired inspection certificates for 4-6 months.

In a conversation with us, an official verifying the inspection records of the aforementioned transport vehicles stated: In mountainous districts and areas rich in sugarcane, timber, and minerals, there are many Hyundai tractor-trailers or trucks of brands like Ifa, Kamaz, and Maz... that have been modified by their owners to carry oversized and overloaded cargo. These vehicles are often outdated, unsafe, and cause environmental pollution during operation. Because of this, the owners of these vehicles only operate within a specific area, so they do not have their vehicles inspected periodically or pay road maintenance fees.

... and tax evasion

In Quy Hop district, many households have purchased passenger and cargo transport vehicles. However, due to a lack of awareness of tax laws, many households have not transferred ownership of these vehicles; have not registered them for tax; and have evaded their tax obligations. Typical examples of unregistered trucks include: Minh Hop commune with 36 vehicles; Dong Hop commune with 34 vehicles; and Yen Hop commune with 28 vehicles... According to the Quy Hop District Tax Department, to combat tax evasion in transportation, the district leadership has directed relevant agencies, especially the police force and local authorities, to cooperate with the tax authorities. However, implementation has encountered many obstacles. Mr. Bui Giang Nam, head of the inter-commune and town tax team in Quy Hop district, said that working groups, together with local authorities, have reviewed and compiled statistics on the number of passenger and cargo transport vehicles in the area, and have invited vehicle owners to work with them three times without success. On the first occasion, the vehicle owners came to the office and were informed and explained about the regulations and policies regarding tax management laws and guiding documents for the implementation of the Tax Law. They were then asked to register, declare, and pay taxes, but they did not comply. The commune authorities sent invitations a second and third time, but they still did not show up. The inter-agency task force even went to their homes to work with them, but they were unable to meet them because they informed each other to proactively avoid meeting them...

In Nam Dan district, combating tax evasion in the transportation sector is considered a crucial task by the tax authorities. However, by the end of August 2014, the total accumulated transportation tax debt reached over 617 million VND. Mr. Tran Dinh Thanh, Deputy Head of the Nam Dan District Tax Department, stated: "The nature of the transportation business means drivers are on the road all day, and tax officials are not allowed to stop vehicles for inspection. During working hours, they are often not at home, and going outside of working hours is extremely inconvenient. Nam Dan district has established task forces to combat tax evasion, with the participation of district police leaders, but we still face difficulties..."

Tuong Duong District has approximately 74 transport vehicles, of which about 15% are passenger transport vehicles. Among these, owners of passenger transport vehicles comply quite strictly with tax declaration and payment. However, most owners of cargo transport vehicles evade declaration or delay tax payment. To strictly enforce tax laws, the People's Committee of Tuong Duong District established a task force with the participation of the district tax and police agencies, and the Department of Industry and Trade to conduct inspections in each commune. According to Mr. Vi Dinh Cat, Head of the Tuong Duong District Tax Department, the situation has improved considerably since the task force began its work. It is estimated that approximately 200 million VND will be collected from transport taxes (currently over 80 million VND has been collected). However, according to Mr. Cat, once the task force's term ends, the management of transport businesses risks reverting to its previous state. Mr. Cat also expressed concern about the large number of transport vehicles in Tuong Duong that transport timber from Laos to businesses. These transport vehicles are owned by people from outside the area; they operate on a seasonal basis, so the tax authorities cannot inspect them...

According to a representative from the Tax Department, since the withdrawal of tax inspection teams from inspection centers, the amount of outstanding transport tax has increased rapidly. To combat tax evasion in the transport sector, the Tax Department has directed its branches to take decisive action; however, the results have been limited. Therefore, the Tax Department has now established a Steering Committee to combat tax evasion and proposed several measures. Among them, according to Mr. Phan Bá Toàn, Deputy Head of the General Affairs & Budgeting Department, the Tax Department has directed its branches to coordinate with local authorities to accurately统计 the number of transport vehicles, comparing it with the number of registered transport vehicles to identify vehicles that have not declared their tax registration or have outstanding tax debts. Subsequently, they will request the Provincial People's Committee to direct the inspection centers not to inspect transport vehicles belonging to businesses, organizations, and households that have not declared their registration or have outstanding state tax debts, according to the list sent by the tax authority...

In fact, the management of transport vehicles has received special attention recently. Many task forces have been established by the province and relevant departments to handle violations in the field of road transport. For example, on July 21, 2014, the Provincial People's Committee established an inter-agency inspection team (including officials from the Provincial Police and the Department of Transport) to patrol, review, and enforce regulations on technical safety and environmental protection. However, due to the large and complex geographical area of ​​Nghe An, despite intensified efforts, many transport vehicle owners are still evading inspections, tax obligations, and violating road transport regulations. This is a serious problem, and therefore, stronger solutions are needed to address it. It is suggested that relevant authorities should focus on conducting inspections and reviews to detect and handle violations at the local level, similar to what the Tax Department is currently doing. If this can be achieved, it will certainly contribute to better management of transportation vehicles.

Text and photos:Ha Giang