Difficulties in collecting business household tax in Yen Thanh

(Baonghean) - The increase in household tax in 2017 makes collection difficult.

In Yen Thanh town, business and trading activities take place daily and are always bustling. According to the revised Law on Value Added Tax, business households with annual revenue of 100 million VND or less are exempt from paying tax.

Thus, the number of low-income households currently exempted from tax will increase and the number of households in the tax department, that is, business households with revenue of 100 million VND/year or more, will have many problems. These households also believe that the personal income tax policy is still unfair, when these households are no longer entitled to family deductions as before.

Mr. Phan Doan Tien - Vice Chairman of the Town People's Committee, Chairman of the Tax Advisory Council of Yen Thanh Town said: Although the Town People's Committee coordinated with specialized tax officials to promote information and propaganda work, and reviewed all business households in the area to establish a set, avoiding missing taxes.

The budget assigned to localities by superiors according to general regulations, mostly increased by 20%, but so far most households have not agreed.

Chairman of Yen Thanh Town Tax Advisory Council explains the 20% tax increase adjustment to Ms. Vo Thi Thanh Xuan's family in Block 1. Photo: Anh Tuan

According to the revenue estimate assigned by the Provincial People's Council and Yen Thanh District People's Council in 2017, the budget allocation for the first quarter is about more than 6.3 billion VND, but up to this point, the whole district has only collected nearly 3.4 billion VND.

Reason: The scope of management households is large, while the mechanism allows business households to self-declare, self-pay taxes and be responsible for the declarations, but many households are not highly aware of paying taxes, most do not keep records, so it is difficult to manage sales.

Taxpayers have the habit of paying monthly instead of quarterly because they have large amounts of money and are afraid to pay at banks and treasuries, but still want to pay directly at home.

Mr. Duong Minh Duc - Head of Yen Thanh Tax Department said: For Yen Thanh district, the revenue from individual business households is small but very difficult to collect, because the legal awareness of households is limited, secondly, income from business activities is still low.

The whole district has over 3,000 business households, but only over 900 households, accounting for about 30% but with many industries, have established tax contributions to the state budget according to regulations. Of these, half are in the transportation business.

Currently, Yen Thanh Tax Department is coordinating propaganda, reviewing and establishing correct, complete and timely tax sets and resolutely handling cases of resistance, procrastination and failure to pay according to regulations.

Mr. Tuan

(Yen Thanh Radio)