Vinh City has 21 real estate projects with tax arrears of more than 900 billion VND.

Comrade Hoang Viet Duong - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Council chaired the meeting. Photo: Phuong Thuy

Based on the actual supervision of Hong Son Ward People's Committee and Tan Hung Company Limited, the members of the supervision team listened to the opinions of the Tax Department and Vinh City People's Committee and raised many issues.

Tax collection is not commensurate with economic growth rate.

Concerned about the total state budget revenue of Vinh city, comrade Ho Sy Hoa - Head of General Department - Planning, Department of Planning and Investment expressed concern, according to the report for the period 2016 - 2018, the results of the following year were higher than the previous year.

However, some revenues related to budget regulation are lower than estimated and not commensurate with the economic growth rate, such as revenues from the industrial and commercial sectors, non-state services, registration fees, and mineral rights fees.

Implementation of state budget revenue estimates in Vinh city in the period 2016 - 2018. Graphics: Huu Quan

Therefore, Vinh City Tax Department needs to clarify the number of households that have established tax sets; the work of publicizing tax sets; the number of enterprises from other provinces and doing business outside the area...

Explaining the problem of the increasingly decreasing budget implementation, a representative of the Vinh City Tax Department said that the reason was that large enterprises were transferred to the Provincial Tax Department and other localities for management; the number of enterprises that did not generate revenue and declared zero was increasing.

Regarding the issue of registration fees in 2017 tending to decrease compared to 2016, the representative of Vinh City Tax Department also said that due to the market fluctuations in 2017, import and export tax policies made people wait for stability. Therefore, in 2018, registration fees were collected in excess and increased by 127% compared to the same period.

Tax debt situation of Vinh city in the period 2016 - 2018. Technique: Huu Quan

Many real estate business projects have large debts

Head of the Debt Management Team of Vinh City Tax Department, Ha Kim Cuong, admitted that the debt situation in the period of 2016 - 2018 tended to increase over the years, in which the recoverable debt decreased but the difficult-to-collect debt increased rapidly because enterprises and individual business households had weak finances and poor business capacity, leading to suspension and tax arrears.

In addition, the enforcement of corporate assets faces many difficulties because some enterprises have no assets or their assets are mortgaged to banks; when all enforcement measures are applied, the subjects have left their place of residence.

Regarding the debt of land use fees for real estate business projects, Vinh City currently has 21 projects with outstanding tax debts of VND935,908 million. Regarding this issue, a representative of the Vinh City Tax Department said that although many solutions have been applied, they still cannot be collected.

Minh Khang Trading Company Limited is implementing a project to build a hotel complex, a supermarket selling pharmaceuticals - medical equipment and supplies, and housing. Currently, this company owes hundreds of billions of dong in taxes. Illustration photo: Nhat Lan

The reason is that investors do not operate locally but are scattered in other areas, making it difficult to meet investors and tax management is limited.

Representatives of the Vinh City Tax Department also recommended that functional agencies need to closely coordinate with tax agencies in the work of collecting and handling arrears; the city needs to promote measures to stimulate growth and reproduction for the economy; promptly remove difficulties and obstacles for taxpayers in production and business.

Receiving and processing vehicle registration fee collection records at Vinh City Tax Department. Photo: Phuong Thuy

Concluding the meeting, comrade Hoang Viet Duong - Member of the Provincial Party Executive Committee, Vice Chairman of the Provincial People's Council requested the Tax Department and Vinh City People's Committee to strengthen the management of tax arrears and prevent tax arrears from arising; strengthen and resolutely handle tax arrears, procrastination and tax evasion...