Dien Chau has 309 enterprises owing more than 20 billion VND in taxes.

Many businesses have large debts.

Comrade Cao Thi Hien - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Council chaired the meeting. Photo: Mai Hoa

On the afternoon of May 3, the Provincial People's Council had a working session with the District People's Committee and the Tax Department of Dien Chau District according to the program of supervising budget collection in the province from 2016 - 2018.

According to the report from the Dien Chau District Tax Department, the local budget revenue in the past 3 years (2016 - 2018) has increased and reached or exceeded the annual estimate. Specifically, in 2016, the total revenue reached nearly 317 billion VND; in 2017, the revenue reached more than 434 billion VND and in 2018, it reached more than 548 billion VND.

Although the total annual revenue is higher than the estimate, land use fee revenue still accounts for a large proportion, such as in 2018, land use fee revenue reached more than 379 billion VND/total revenue of 548 billion VND.

Tax losses in individual businesses in Dien Chau still occur. Illustration photo: Mai Hoa

In particular, tax collection from non-state-owned industry, commerce and services has failed to meet the assigned budget target for three consecutive years (only reaching 79-90%).

Some tax revenues are put into management but not collected, such as private housing construction; households trading in land, stone, sand, gravel; gasoline trading; private transportation business.

In addition, the tax arrears and bad debts are higher year after year. The total number of enterprises with tax arrears is 309 units with a total amount of more than 20 billion VND; of which 144 enterprises have debts from 2 million VND to over 2 billion VND and 165 enterprises have debts under 2 million VND. Notably, 61/309 enterprises have bad debts with more than 11.6 billion VND.

Total tax debt and difficult-to-collect tax debt in Dien Chau district increases annually. Graphics: Huu Quan

Typically, there are many enterprises with high tax debts that are unable to be collected, such as Tuan Thanh Trung Company Limited with a total debt of more than 2.1 billion VND; Hai Quan Consulting and Construction Joint Stock Company with a debt of more than 1.8 billion VND; Nhu Thanh Lam One Member Company Limited with a debt of more than 1.7 billion VND; Truong Giang Company Limited with a debt of more than 1.3 billion VND...

The Head of the Dien Chau District Tax Department explained the issues raised by the monitoring team.

Clarifying the causes of tax losses in some areas

At the meeting, members of the Provincial People's Council's monitoring delegation raised a number of issues related to the frequency and effectiveness of inspection and examination work by the Tax Department at enterprises; the difference between the aggregated data on individual business registration households between the Tax Department and the Statistics Department to establish a tax management set.

Some members also raised concerns that in Dien Chau district, there is a large demand for construction, many mining and gathering points for construction materials such as sand, gravel, stone, etc., but there is no resource tax in 2018 in the area; the reason is that outstanding debts, bad debts increase every year and revenue loss in some areas of transportation business, private housing construction, etc.

Vice Chairwoman of the Provincial People's Council Cao Thi Hien concluded at the meeting. Photo: Mai Hoa

Concluding the meeting, in addition to sharing the difficulties and shortcomings in the policy mechanism related to tax collection at the macro level, Vice Chairwoman of the Provincial People's Council Cao Thi Hien also said that, regarding the responsibility of state management in the area, she suggested that Dien Chau district needs to strengthen state management in all fields, especially transportation businesses; sand and gravel businesses; private housing construction; and businesses in industrial clusters.

From there, we can grasp the operating situation of enterprises and production and business households to ensure correct, full and fair collection among tax payers.

Local authorities and tax agencies strengthen propaganda, guidance and support for taxpayers; along with that, promote production, business, attract investment in the area, to promote increased revenue and nurture revenue sources in the area; coordinate to have solutions to urge tax debt collection and prevent tax losses...

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