Tax Sector Achieves 58% of Budget Estimate in First Half

The General Department of Taxation (GDT) held an online review conference to assess tax activities for the first half of the year and outline tax objectives and solutions for the last six months. The conference was attended by Finance Deputy Minister Cao Anh Tuan, GDT General Director Mai Xuan Thanh, GDT Deputy General Directors, and leaders of GDT departments.

Director General Mai Xuan Thanh of the General Department of Taxation addresses the conference to assess tax activities for the first half of the year and outline tax objectives and solutions for the last six months

At the beginning of the year, GDT directed tax authorities at all levels to focus on seven key tasks and 10 groups of solutions proposed at a review conference on tax activities in 2023. The effectiveness of revenue management solutions led to the total State budget revenue of VND865,350 billion in the first six months of 2024, equal to 58.2% of the full-year target and up 15.3% year on year. Of the sum, budget revenue from crude oil was estimated at VND29,692 billion, equal to 64.5% of the estimate but down 4.8% year on year. Domestic revenue was forecast at VND835,658 billion, equal to 58% of the target and up 16.2% year on year. Domestic tax and fee revenue was VND655,303 billion, equal to 60.4% of the target and up 12.1%. In the first half, 12 out of 21 tax revenue items and 30 out of 63 provinces and cities completed over 55% of the target. 54 provinces and cities reported State budget revenue growth in the six-month period.

The tax sector is actively enhancing support and removing barriers for businesses to stimulate revenue growth

Focused communications on e-commerce management

Regarding communications, tax authorities widely spread major events and hot topics such as e-invoices generated from cash registers, e-invoices generated by petroleum retailers, fraudulent invoice prevention, e-commerce tax management, livestream sales, tax refund, tax debt enforcement, eTax Mobile application, and new tax policies to people. Taxpayer support was boosted with many diverse forms, especially by electronic means.

In the first six months, the tax sector conducted 24,076 inspections and checks at taxpayers' headquarters; probed into 337,838 tax declarations at tax authorities, equal to 122.2% in the same period of 2023. The total amount of money proposed for settlement was VND21,526 billion, up 6.3% year on year. Of the sum, the total tax amount collected after inspections was VND6,913 billion; the amount of deducted value was VND1,112 billion; the amount of loss reduced was VND13,501 billion. Tax authorities probed into 314 companies with related-party transactions; collected, refunded and fined VND730 billion and revised up the taxable income by VND3,810 billion.

To ensure budgetary sources, GDT specified and assigned debt collection targets and debt reduction targets to specific tax agencies. It organized local working groups to grasp tax debt management, synthesized difficulties and made specific proposals for immediate execution. At the same time, it directed tax agencies to resolutely apply debt management and tax debt enforcement measures, increased the use of temporary exit suspension measures, researched and developed a project to automate debt management and tax debt enforcement. From January to June, tax authorities at all levels issued 174,492 enforcement decisions and 16,859 temporary exit suspension notices to collect VND24,252 billion of tax debts. The sector collected VND45,468 billion in debts.

In particular, GDT recently defined tax management in e-commerce and digital platforms as key tasks to prevent revenue loss and protect domestic production. Therefore, in the first half of the year, GDT directed provincial/municipal tax departments to strictly administer organizations and individuals with e-commerce business, and improve the use, review and construction of e-commerce databases. With strong determination in actions, 383 e-commerce exchanges provided information on the e-commerce information portal in the first six months of 2024, an increase of 22 exchanges in five quarters (from the fourth quarter of 2022 to the fourth quarter of 2023). Tax authorities reviewed, urged and supported tax declaration and payment for 11,595 enterprises and 31,395 individuals. The amount of tax declared and paid was VND9,979 billion, an increase of VND3,480 billion from a year-ago period. 4,560 violations were handled (including 1,274 companies and 3,286 individuals), fined VND297 billion.

Determined to achieve outstanding performance

Speaking at the conference, GDT General Director Mai Xuan Thanh said: Although socioeconomic situations were difficult and challenging in the first six months of 2024, with the support and direction of the Government, the Prime Minister, the Ministry of Finance, the General Department of Taxation, and the effort and responsibility of all employees of tax agencies, tax results were quite optimistic. Basically, all aspects of tax management and anti-loss work achieved positive results.

Nonetheless, H2 tasks will still be very heavy and serious. As the tax collection in some localities is slow and tax debts are increasing, the adoption of support policy packages will have a certain impact on revenue sources. To comprehensively complete the assigned tasks in 2024, he requested the tax sector to focus on budget collection in a bid to exceed the target by at least 5%. In addition, the sector will need to effectively and practically carry out support packages approved by the National Assembly and the Government in Resolution 14/2024/QH15 and Decree 72/2024/ND-CP (VAT reduction by 2%), Decree 64/2024/ND-CP, Decree 65/2024/ND-CP (extending tax payment terms) and disseminate information to policy beneficiaries. It will advise on the effective perfection of tax policies, first of all, three important decrees: A decree on amendments to Decree 123/2020 on invoices and documents; a decree on amendments to Decree 132/2020, and a decree on global minimum tax. In the coming time, tax authorities will need to research and reform communications to support taxpayers from the method to the content, clearly conveying “taxpayer-centered service” messages and aiming to improve voluntary tax compliance and taxpayer satisfaction with tax authorities.

By Hien Kien, Vietnam Business Forum