Budget revenue for the first 10 months: Positive signs

(Baonghean) - Nghe An's budget revenue for the first 10 months of the year is estimated at 5,954 million VND, reaching 88.4% of the annual target (6,732 billion VND), an increase of 12.8% compared to the same period in 2013. The Provincial People's Committee is continuing to direct the Tax Department and localities to strengthen budget revenue collection measures to complete the annual plan…

The company is making an effort.overcome difficulties

Making a significant contribution to the budget revenue results in the first 10 months of 2014, despite the continued difficulties in production and business in the province, many enterprises in Nghe An have actively sought markets, invested in technological innovation, and strived in production and business... creating domestic revenue of 5,000 billion VND, reaching 84.6% of the province's budget revenue forecast, an increase of 10.5% compared to the same period.

Production line at Sao Vang Fertilizer Company (Nghe An Agricultural Materials Corporation). Photo: Pham Bang

Thanks to a comprehensive approach involving various solutions, Trung Do Joint Stock Company achieved a revenue of 292 billion VND and contributed 19 billion VND to the state budget. Mr. Doan Quang Le, Chief Accountant of Trung Do Joint Stock Company, stated: "For many years, Trung Do Joint Stock Company has consistently received commendations from the Nghe An Provincial People's Committee for its tax payment achievements; each year, the company contributes over 20 billion VND to the provincial budget, while also providing stable employment for 90 workers with an average income of 4.5 million VND per person per month." The Nghe An Dairy Factory branch in Cua Lo contributed 9 billion VND in the first nine months of the year, also thanks to expanding production scale and strong milk sales. At Song Con Sugar Cane Joint Stock Company, the expansion of sugarcane cultivation in several districts such as Anh Son, Thanh Chuong, and Ha Tinh, along with the modernization of refined sugar production lines, resulted in a tax contribution of 21.2 billion VND in the first ten months of 2014. Many other units in the province have also made efforts in production and business, contributing high amounts to the state budget, such as: Saigon Beer - Song Lam Joint Stock Company (440 billion VND), Hanoi Beer - Nghe An Joint Stock Company (297 billion VND), Song Lam Sugar Cane Joint Stock Company (6.1 billion VND), 482 Joint Stock Company (9.2 billion VND), Nghe An Agricultural Materials Joint Stock Corporation (10.2 billion VND), Pharmaceutical and Medical Supplies Joint Stock Company (3.8 billion VND)...

Promote solutions

During this period, Nghe An's annual budget revenue is only about 6,000 – 6,500 billion VND, while annual budget expenditure is approximately 17,000 billion VND. This pressure weighs heavily on the Tax Department and the district and local tax offices. Furthermore, since the beginning of the year, many revenue targets have not been met, such as those from the Saigon Beer - Song Lam Brewery. For example, the Saigon Beer - Song Lam Brewery paid only 440 billion VND out of a projected 600 billion VND; the TH Milk Factory had a very high projected amount, but due to the input cost deduction phase (investment), it only paid 1 billion VND. In addition, the closure or cessation of operations by hundreds of businesses, and the reporting of zero tax returns, have also impacted budget revenue. Regarding revenue from import and export activities, the increase in the past 10 months (reaching 113% of the projected target, a 26.1% increase compared to the same period in 2013) was due to increased imports of petroleum products; the Lao People's Democratic Republic implemented several policies prioritizing wood exports and increased imports of certain electronic components for assembling mobile phones,...

Regarding solutions to increase revenue in the coming period, Mr. Nguyen Dinh Hoa – Director of the Nghe An Tax Department – ​​said: “The rate of budget revenue growth in the year is gradually decreasing. This is partly due to the fact that some of last year's revenue was exempted and extended to this year, and in the last six months of the year, tax revenue from most businesses decreased, showing that production and business are still very difficult. Some revenue items are low, such as land fees, which only collected 360 billion VND in 9 months, while the assigned plan was 620 billion VND, reaching only 62%. The Tax Department has been very decisive in collecting tax debts with many strong measures such as freezing assets, suspending invoice issuance; coordinating with the Department of Natural Resources and Environment to find solutions to collect mineral exploitation and real estate taxes. Nearly 67 businesses owing resource tax (44 billion VND) have been notified, and within 90 days, if the businesses do not pay the full amount of tax, recommendations will be made to revoke their operating licenses. The Tax Department is also urging businesses with tax debts to pay their outstanding amounts. "In order to qualify for interest forgiveness under government regulations, it is expected that an additional 100 billion VND will be collected from this tax debt."

To ensure that budget revenue targets for 2014 are met and to create momentum for subsequent years, while also effectively implementing the directives of the Chairman of the Provincial People's Committee, the Nghe An Tax Department is strengthening discipline and order in tax management, promoting administrative procedure reform to facilitate taxpayers; reviewing and thoroughly understanding the subjects and sources of budget revenue in the area; controlling tax declarations and tax settlements of businesses, organizations, and individuals to collect taxes, fees, levies, and other revenues correctly, fully, and promptly into the state budget. It is also urging the full and timely collection of taxes and budget revenues that were extended in 2013 and are now due to be paid into the budget.

The organization shall fully and promptly collect all revenues based on the results of audits, inspections, and law enforcement agencies. It shall strictly manage tax refunds, ensuring they are granted to the correct recipients and in accordance with regulations, and promptly and strictly detect and handle violations. It shall maintain regular tax inspections and audits, and coordinate between tax collection agencies, financial agencies, and other functional forces in managing revenue collection, combating tax evasion, and handling outstanding tax debts. It shall focus on tax debt collection, implementing decisive and comprehensive measures for debt collection and enforcement in accordance with the law. The Provincial People's Committee shall direct local Party committees, governments at all levels, and relevant departments and agencies to closely coordinate with the tax authorities and the Tax Debt Recovery Steering Committee in districts, cities, and towns in the collection and enforcement of tax debts.

Regarding revenue from real estate projects that have not been collected recently due to the lack of land allocation decisions, the Tax Department is coordinating with Vinh City and the Department of Natural Resources and Environment to review and collect land use fees for urban areas where fees have been collected from individuals and organizations but the procedures for submitting them to the state budget have not been completed as required. Solutions are being developed to accelerate the auctioning of land use fees to achieve the 2014 budget revenue target. Nghe An Customs is also strengthening monitoring, inspection, and control to prevent taxpayers from exploiting certain state mechanisms and policies in the import and export sector to evade taxes and engage in trade fraud; implementing measures to focus on collecting outstanding tax debts and prevent prolonged tax arrears; accelerating the implementation of the plan for reforming, developing, and modernizing the Customs sector to create the most favorable conditions for businesses; and publicly and transparently disclosing customs administrative procedures on the internet and at Customs offices.

Chau Lan