Efforts to achieve revenue collection targets.

(Baonghean) - In the first six months of 2013, the Nghe An Tax Department estimated domestic revenue at VND 2,346.5 billion, equivalent to 52% of the statutory budget, 43% of the projected budget, and an 11% increase compared to the same period last year. Of this, revenue from land use fees was estimated at VND 114.7 billion, equivalent to 27% of the statutory budget and 52% compared to the same period last year.

According to the Nghe An Tax Department's report, in the first six months of the year, most revenue and tax categories increased compared to the same period last year. Revenue from central state-owned enterprises is estimated at VND 403.8 billion, equivalent to 49% of the statutory budget and a 21% increase compared to the same period last year. Revenue from foreign-invested enterprises is estimated at VND 75 billion, equivalent to 50% of the statutory budget and a 13% increase compared to the same period last year; Revenue from the non-state industrial and service sector is estimated at VND 1,158.6 billion, equivalent to 58% of the statutory budget and a 22% increase compared to the same period last year; Revenue from registration fees is estimated at VND 184.6 billion, equivalent to 63% of the statutory budget and a 48% increase compared to the same period last year; Revenue from land lease fees is estimated at VND 43.6 billion, equivalent to 55% of the statutory budget and a 10% increase compared to the same period last year. Revenue from fees and charges is estimated at 39.1 billion VND, equivalent to 58% of the legally mandated budget and a 25% increase compared to the same period last year. Revenue from land use fees is estimated at 114.7 billion VND, equivalent to 27% of the legally mandated budget and 52% compared to the same period last year; Revenue from environmental protection tax is estimated at 74.2 billion VND, equivalent to 39% of the legally mandated budget and 87% compared to the same period last year.

It can be said that 2013 continued the difficult economic situation both globally and domestically. Nghe An's economy also faced potential risks, with a sharp decline in purchasing power and large inventories; the number of businesses dissolving, going bankrupt, ceasing operations, or remaining but not generating production or business activity increased; interest rates decreased, but access to capital remained difficult, resulting in low budget revenue and significant tax arrears. Many businesses lacked the funds to pay taxes, especially those in the construction and real estate sectors. Commercial and service businesses experienced sluggish sales, shops were deserted, and despite price reductions, purchasing power remained low.

Therefore, achieving 52% of the tax revenue target for the first six months of 2013 can be considered a "miracle" for the Tax Department. This is because in the first six months, the number of active businesses was 7,042; the number of businesses temporarily suspending operations was 202; the number of businesses that ceased operations and had their tax identification numbers temporarily closed was 527; and the list of outstanding tax debts continued to grow longer.

Many companies still owe large amounts of taxes, such as: Him Lam Joint Stock Company owing 3.6 billion VND (with suspended invoices), Vietnam-Laos Investment and Cooperation Corporation Limited owing 19.9 billion VND, Central Vietnam Investment and Development Joint Stock Company owing 13.6 billion VND, Investment and Construction Joint Stock Company 24 owing 14.3 billion VND; Saigon Trung Do Joint Stock Company owing 4.7 billion VND, Minh Khang Trading Company Limited owing 2.4 billion VND, Phu Nguyen Hai Company Limited owing 3.3 billion VND, Bach Viet Joint Stock Company owing 1.1 billion VND, Nghe An Petroleum Cement Joint Stock Company owing 724 million VND… The total outstanding tax debt has reached 823 billion VND, causing headaches not only for the Tax Department but also for all levels of government.

To achieve these results, the Tax Department has coordinated well with the Department of Planning and Investment to understand the situation of businesses; organized a "week of listening to businesses," and required businesses to sign commitments to pay outstanding tax debts. The tax branches have strengthened efforts to urge the submission of tax declarations and advised on handling cases of violations related to late submission of tax declarations in accordance with regulations.

In the first six months of the year, 330 cases of late filing of documents were penalized with fines totaling 257 million VND; inspections were conducted at 510 businesses, achieving 53% of the set plan, with a total tax recovery of 21.3 billion VND, of which 11.5 billion VND has been paid into the state budget; at the same time, 1.8 billion VND of non-refundable tax was excluded, losses were reduced by 21.9 billion VND, and deductible tax was reduced by 1.4 billion VND.

The Nghe An Tax Department has also conducted inspections at 53 units, completing 47 units, achieving 40% of the plan and 105% compared to the same period last year. The amount of tax arrears, refunds, and penalties collected through inspections totaled 23.3 billion VND. Of which: tax arrears and refunds amounted to 19.959 billion VND; penalties amounted to 3.31 billion VND. On average, tax arrears and penalties amounted to 495 million VND per unit. Simultaneously, the inspections reduced losses by 23.5 billion VND. The amount of tax recovered and remitted to the state budget was 15.2 billion VND, reaching over 80% of the outstanding tax arrears due for payment.

Recovering outstanding tax debts is a key priority. The Nghe An Tax Department has intensified debt management measures such as: penalties for late payment, tax debt enforcement, asset seizure; announcements on mass media and in communes and wards; producing documentaries on tax debts, issuing budget collection orders... At the same time, it has sent a letter to the State Bank of Vietnam requesting guidance on inspecting commercial banks and credit institutions regarding the enforcement of administrative tax decisions; and advised the Provincial People's Committee to issue a directive on strengthening the direction of tax debt recovery…

As of May 31, 2013, the Nghe An Tax Department had issued 13,167 late payment penalties totaling VND 16.9 billion. Simultaneously, it carried out 1,337 tax debt enforcement cases by deducting funds from bank accounts, collecting over VND 41 billion; 33 cases of tax debt enforcement by seizing assets, collecting VND 100 million; and 13 cases of tax debt enforcement by suspending the use of invoices, collecting over VND 13 billion.

Support for taxpayers and addressing difficulties and obstacles faced by businesses have also received increased attention. 1,125 taxpayers received direct support at tax offices; 1,164 received support via telephone; 43 businesses received written responses; and 4 online interactions with taxpayers were organized.

The sluggish real estate market is reducing government revenue.
(The photo is for illustrative purposes only, taken at Vinaconex 20 Urban Area).

The good news is that, with the attentiveness, encouragement, and concern of the local government and tax authorities, many businesses have committed to paying their outstanding taxes. For example, in the Nam Dan District Tax Office, Xuan Hoa Brick and Tile Joint Stock Company (Nam Dan) committed to paying one-third of its debt, approximately 260 million VND; Hang Hai Limited Company committed to paying 50 million VND; and Hung Khanh Construction, Service and Trading Joint Stock Company committed to paying 30 million VND. The total amount of tax debt that businesses committed to paying in June in Nam Dan is 1.5 billion VND. Real estate businesses in Vinh City also overcame difficulties to pay a portion of their tax debt.

In the last six months of the year, the Tax Department strives to complete the 2013 budget revenue plan. The Department's leadership stated that the solution is to focus on evaluating, analyzing, and forecasting factors that may affect state budget revenue in each locality, thereby proposing specific solutions to combat revenue loss and exploit revenue sources.

Continue to coordinate with all levels and sectors to promptly resolve difficulties and obstacles, creating favorable conditions for organizations and individuals to boost investment, develop production and business, and nurture revenue sources for the state budget. Actively exploit revenue sources to compensate for revenue shortfalls and seriously implement the tax department's anti-tax evasion programs.

Chau Lan