Budget collection in the first 4 months of the year: Efforts to overcome difficulties

(Baonghean) - In the first 4 months of the year, domestic budget revenue in Nghe An reached 2,016 billion VND, equal to 37% of the ordinance estimate, 35% of the People's Council estimate and increased by 33% over the same period. That result reflects the overcoming of difficulties by enterprises, the great efforts of the government and all levels in revenue collection, especially the role of the tax sector from the province to the grassroots level.

Although the province and the country still face many difficulties due to the economy not recovering, changes in tax refund policies, construction enterprises are still in crisis due to limited capital, investors still owe a lot to contractors. However, the province's budget revenue in the first 4 months of the year still achieved positive figures. In the result of 2,016 billion VND of domestic revenue in the first 4 months of the year of the province, the total revenue minus land use fees was 1,882.7 billion VND, equal to 37% of the ordinance estimate, 36% of the People's Council estimate and increased by 30% over the same period. There are 15/24 districts with revenue in the first 4 months of the year reaching above the average of the province (35% of the People's Council estimate), such as: Quy Chau (54%), Con Cuong (52%), Que Phong (50%), Do Luong (49%). Many large tax payers such as beer companies, Tan Khanh An One Member Co., Ltd., Nghe An Agricultural Materials Corporation, Ban Ve Hydropower Joint Stock Company...

Fresh milk production at TH True Milk Factory.

The factors that increased revenue in the first 4 months of the year can be seen as this year, the Government did not issue exemption and extension policies like in 2013 and previous years, only applied a 50% reduction in land rent for enterprises; The business situation is more positive, in 4 months, 477 newly established enterprises were granted tax codes (MST): 477; bringing the total number of enterprises that the tax authority is managing with MST: 8,418, of which the total number of enterprises with tax declarations: 6,249, reaching 75%. Other budget revenue in the first 4 months of the year increased by 100 billion due to the recovery of previous year's expenditures (over 78 billion VND), fines for traffic safety violations (22 billion VND); Corporate income tax for the third quarter of 2013 was extended to January 2014 by Nghe An Sugarcane Company (over 37 billion VND), Revenue from contractor tax of Project Board 85 of Cai Mep Thi Vai Port project (nearly 15 billion VND).

Mr. Nguyen Dinh Hoa - Director of Nghe An Tax Department said: In the first 4 months of the year, to achieve the above encouraging results, in addition to the factors of increasing revenue, the Tax sector has taken action right from the beginning of the year with key measures. That is, re-establishing the tax set for business households to stabilize tax in 2014 according to the new regulations in the Law on Tax Administration, supplementing and amending, publicizing the tax set for business households at the People's Committees of wards and communes, tax teams of markets, etc.; Publicizing the tax set for business households to stabilize tax in 2014, enterprises with large tax debts, and enterprises in violation on the industry's electronic information page and the Electronic Information Portal of the Provincial People's Committee; Or focusing on debt collection and tax debt enforcement;...

In addition, the sector has implemented the project of cross-checking invoices. Currently, most enterprises in the province have made online declarations, however, the situation of dishonest declarations still exists. The Tax Department has established a working group "Preventing violations of invoices" through the application "Comparing invoice lists" and vigorously implemented cross-checking of enterprise invoices, the results of which are also very positive. The Tax Department has also organized training for all officials, civil servants and all enterprises on new tax policies applied from January 1, 2014 (amended Law on Tax Administration, amended Law on VAT, Corporate Income Tax, etc.).

In Nam Dan, to increase budget revenue right from the first months of the year, the district has had many policies to attract investment, prioritize job creation for local businesses, and establish a Steering Committee to prevent revenue loss and tax arrears, which is undertaken by the district, tax department, police, finance and planning, natural resources and environment, etc. Chairman of Nam Dan District People's Committee, Thai Van Nong, said: "The budget revenue and expenditure estimate is a legal target, so the management work of authorities at all levels from district to grassroots level must strengthen direction and management, with close coordination. Departments and branches coordinate with Nam Dan Tax Department to focus on collecting tax arrears from previous years, striving to reach 70% this year. The district's land use fee is assigned to the Department of Natural Resources and Environment to review and synthesize to conduct land auctions. For taxes arising in the month, the Tax Department is requested to urge immediate collection, correct collection, and full collection." In the first 4 months of the year, Nam Dan collected 21,832 million VND, reaching 39% of the annual ordinance estimate, reaching 34% of the district People's Council estimate, equal to 201% compared to the same period last year. This is a very positive result for Nam Dan.

In Cua Lo Town, Mr. Ha Anh Dung - Head of the Tax Department said: Budget collection is being looked at in the second and third quarters, but from the beginning of the year, all work has been ready. After completing the collection of business license tax, the Department has established a tax collection team for 300 more households, conducted observations, surveys, and monitored the revenue of hotels and restaurants, and strived to complete the budget collection to reach 65% of the estimate in the second quarter. Currently, after the first 4 months of the year, Cua Lo Town has reached 40%. However, the plan to collect 30 billion in land use fees is very difficult to achieve.

The joy of collecting the budget in the first quarter will create momentum for the tax sector and localities to step up the collection work, trying to complete the annual plan. However, there have been signs of a gradual decrease in the budget collection. In January, 619 billion was collected; in February, 435 billion and in March, 416 billion. In addition, tax debt is increasing: By April 2014, the remaining tax debt was 852 billion. The situation of business households and enterprises owing taxes and then absconding is on the rise: By April 30, 2014, 97 enterprises were established, printed invoices and then absconded and still owed taxes, of which Vinh City had 80 enterprises. In tax departments such as Hoang Mai Town, Dien Chau... tax arrears are increasing but the collection of arrears is very difficult and not drastic, and the revenue source is limited. Therefore, if we do not make efforts, completing the budget collection plan in the coming months will be very difficult. As in Hoang Mai, Mr. Ngo Gia Tinh - Head of the Tax Department of Hoang Mai Town said: there are up to 10 billion VND in tax arrears that cannot be collected (?). Dien Chau currently owes over 16 billion VND in tax arrears. Currently, the transport business tax is losing quite a lot of revenue due to the abolition of the anti-tax loss task force for transport activities at the Road Motor Vehicle Inspection Center.

Therefore, in the coming time, the task of the Tax sector is extremely heavy. This sector is continuing to take drastic measures to collect and enforce tax debts, complete tax debt cancellation dossiers and submit them to competent authorities for handling in accordance with the provisions of the Law on Tax Administration, and conduct inspections and examinations at enterprises in 2014 that have been approved...

Article and photos:Chau Lan