Chairman of the Provincial People's Committee Thai Thanh Quy directed to focus on collecting tax debts.
(Baonghean) - Faced with the situation of increasing tax debts and some areas of tax losses, the Chairman of the Provincial People's Committee established an inspection team led by the Vice Chairman of the Provincial People's Committee to go to the grassroots to analyze and urge the collection of revenues. At the same time, the Provincial People's Committee requested the Nghe An Tax Department to strengthen solutions to prevent revenue losses and limit tax arrears.
Focus on tax debt collection
During the meeting to listen to the progress report on the implementation of the State budget collection task in the first 10 months of the year and discuss measures to promote the State budget collection in the province in the last 2 months of 2018 on November 5, 2018, Chairman of the Provincial People's Committee Thai Thanh Quy pointed out a number of shortcomings and limitations: Domestic revenue (excluding land use fees) has not reached the assigned estimate, which will affect the expenditure balance of the provincial budget; Some revenue items with a large proportion achieved lower than the assigned estimate (revenue from the business sector, including: revenue from central state-owned enterprises, local state-owned enterprises, foreign-invested enterprises and non-state-owned enterprises).
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| Nghe An Tax Department officials strengthen tax debt control. Photo: Chau Lan |
Tax debt in Nghe An is high, some large enterprises tend to misappropriate tax money in the short term, increasing tax debts; there is still a phenomenon of tax loss in some areas. Some debts cannot be collected due to tax debts of criminal subjects, fugitives, missing subjects...
The Chairman of the Provincial People's Committee requested the Tax Department and other sectors and localities to focus on directing strongly to complete the 2018 budget estimate, including total revenue and structure of each sector; strive to increase budget revenue by 3% compared to the assigned estimate, and at the same time reduce the tax debt ratio to below 5% of total budget revenue according to regulations of the Ministry of Finance. The province will establish an interdisciplinary inspection team of the province headed by the leader of the Provincial People's Committee to urge and collect tax arrears.
After the conclusion of the Chairman of the Provincial People's Committee, Mr. Le Ngoc Hoa - Vice Chairman of the Provincial People's Committee, together with the Tax Department, urged a number of enterprises such as Thien Minh Duc Joint Stock Company, TH Milk Joint Stock Company... which are Nghe An enterprises but are declaring taxes in other localities to pay taxes to the province.
As a result, in November, Thien Minh Duc Joint Stock Company paid 90 billion VND, TH Milk Joint Stock Company paid 60 billion VND along with a number of other enterprises, so the amount paid in November 2018 reached nearly 1,000 billion VND.
In addition, the Tax Department established a working group to work with Tax Branches with large tax debts (Vinh City, Dien Chau, Nghi Loc, Yen Thanh, Quynh Luu) to urge debt collection.
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| In November, TH Milk Joint Stock Company paid 60 billion VND. Photo: Document |
"Unlocking" revenue from real estate
In recent times, the management and investment of urban land use projects in the province have been seriously and promptly implemented by the Provincial People's Committee, all levels, sectors and investors, attracting many social resources to invest in urban projects, high-rise housing - apartment buildings, thereby effectively exploiting and using land funds, contributing to meeting the essential needs of residential land and housing for people in the province. At the same time, contributing to the improvement and development of urban infrastructure to become more civilized and modern, creating a large source of revenue for the budget.
However, the implementation of financial obligations of many projects in Nghe An province with the State budget still has many shortcomings, not commensurate with the capacity and investment level of the projects. Most of these projects declare and pay taxes at a selling price lower than the actual transaction price on the market, and the value added tax is insignificant. This causes loss of State budget revenue as well as unfairness in the implementation of financial obligations in real estate business activities in the province.
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| Checking the amount of gasoline at gas stations as a basis for calculating taxes. Photo: Tran Chau |
On October 19, 2018, the Provincial People's Committee issued Official Dispatch No. 8057/UBND-KT on tax collection management for real estate business projects. Accordingly, the Provincial People's Committee assigned the Nghe An Tax Department, provincial departments, branches, and sectors, People's Committees of districts, cities, and towns and requested enterprises with real estate business projects in the province to strictly implement a number of contents such as: The Provincial People's Committee requires real estate project investors in the province to list selling prices, declare transfer values, and contribute capital to residential land and housing projects at real estate projects at market prices.
In case the land price of the plots declared by the real estate project investor is lower than the land price determined by the land price consultancy unit, Nghe An Tax Department shall base on the land price determination results of the land price consultancy units to make the minimum price to determine related financial obligations.
The province assigned the Department of Natural Resources and Environment to direct the land price consultancy unit to provide a complete, honest and timely report on land price determination results and land price valuation certificates to the Nghe An Tax Department to serve tax collection management.
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| Fish sauce production line at Masan MB Nam Cam. Photo: Hoang Vinh |
Implementing the direction of the province, Nghe An Tax Department has coordinated with departments, branches, sectors and the Southern Information and Valuation Joint Stock Company Branch in Nghe An to collect information on projects; Coordinated with the Department of Construction to collect information on planning and planning adjustments of projects throughout the province; Coordinated with the Department of Natural Resources and Environment to request the Southern Information and Valuation Joint Stock Company Branch in Nghe An to provide a report on land valuation results and land valuation certificate.
Mr. Trinh Thanh Hai - Director of Nghe An Tax Department said: Nghe An Tax Department has issued Decision No. 1022/QD-CT dated May 21, 2018 on establishing a working group to analyze and inspect real estate businesses with urban land use projects in the province. The working group analyzes and inspects real estate businesses with urban land use projects in the province.
In addition, the Tax Department has been carrying out 10 inspection decisions at 10 enterprises. By the end of November, it had issued decisions to handle 4 units with the amount of tax arrears and fines of more than 7 billion VND. The above results are very encouraging, contributing to the completion of the budget collection task at the end of 2018.