Year of Remarkable Achievements

Throughout 2023, the Binh Thuan Provincial Tax Department faced the arduous task of state budget collection amidst challenging socio-economic conditions. Despite these hurdles, the resolute leadership of the Ministry of Finance and the General Department of Taxation, coupled with the support of the province’s entire political system, spurred the tax department. The concerted efforts of the business community, alongside the dedication of tax officials and civil servants, contributed to commendable revenue collection outcomes. These achievements have helped liberate financial resources, thereby generating impetus for the province’s economic growth and fortifying social security.

Ms. Tran Thi Dieu Hoang, Director of Binh Thuan Tax Department

Noteworthy achievements

 In a proactive stance to fulfill the 2023 budgetary objectives, the Binh Thuan tax sector initiated tax management solutions early in the year. These measures were aimed at mitigating tax losses associated with e-commerce and real estate sectors, enhancing debt collection efforts, and fostering the digital transformation of tax administration. As a result, the local budget revenue collection yielded commendable outcomes, with domestic revenue in the first 11 months reaching VND8,370 billion, which is 97.26% of the projected estimate. Notably, half of the revenue categories surpassed their expected targets.

Guided by the General Department of Taxation, the Binh Thuan Provincial Tax Department has embarked on a comprehensive reform agenda to digitize tax operations, thereby streamlining administrative processes for taxpayers. A typical example of this initiative is the enhanced adoption of electronic invoicing, in accordance with the Ministry of Finance’s Directive 04/CT-BTC dated November 24, 2023. This move toward digitalization has been embraced by 834 taxpayers, including 675 enterprises and organizations, as well as 159 business households. Additionally, the Tax Department has introduced the innovative “Lucky Invoice” Program, designed to shift consumer behavior towards requesting invoices for purchases, thereby safeguarding against fiscal malpractices and enhancing compliance.

Ms. Tran Thi Dieu Hoang, Director of the Binh Thuan Tax Department, acknowledged the substantial benefits that electronic invoicing has conferred upon businesses, economic organizations, households, and individuals. The adoption of electronic invoices has notably streamlined procedures, yielding significant time and cost savings over conventional methods. This innovation also aids state agencies in combating invoice fraud and curbing revenue loss, fostering a more equitable business landscape and reducing societal expenses.

During the transition to electronic invoicing, taxpayers have faced several challenges. A primary concern has been the integration of electronic invoice software with existing sales and accounting systems, which is essential for seamless electronic invoice utilization. Furthermore, there is a significant financial investment required for personnel training on the new systems.

Additionally, the predominance of small-scale business households in the region, characterized by limited managerial expertise and information technology infrastructure, poses a second challenge. There is also a prevalent misconception equating invoices with paper documents, leading to skepticism about the legitimacy of electronic invoices. This lack of awareness has resulted in customer apprehension. The tax administration process has encountered hurdles in the issuance of tax authority-coded invoices within a single day, and there is widespread confusion among taxpayers regarding the rectification of erroneous invoices.

In response to these challenges, the Binh Thuan Tax Department recommended that the Provincial People’s Committee enact Decision 1039/QD-UBND on April 19, 2022. This decision called for the formation of a steering committee to oversee the adoption of electronic invoices within the province. Subsequently, Decision 1234/QD-UBND was issued on May 24, 2022, outlining the operational guidelines of the steering committee. These measures aim to fortify leadership, provide strategic direction, and harness the collective efforts of the political system throughout the implementation phase. The Tax Department has been proactive in disseminating information, offering timely support to taxpayers, and instilling confidence and trust in the use of electronic invoices. Collaborative efforts with the Vietnam Tax Consulting Association and electronic invoice service providers have led to the organization of conferences and training sessions, guiding organizations and businesses in the effective use of electronic invoices.

Ms. Tran Thi Dieu Hoang said: “On November 30, 2023, the Tax Department of Binh Thuan province promulgated Official Dispatch 8438/CTBTH-KTNB. This directive aligns with Prime Minister’s Official Dispatch 1123/CD-TTg dated November 18, 2023, the Ministry of Finance’s Directive 04/CT-BTH dated November 24, 2023, and the Office of Binh Thuan Provincial People’s Committee’s Official Dispatch 6068/VP-TH dated November 28, 2023. These documents collectively reinforce the management and utilization of electronic invoices, thereby accelerating the digital transformation within the tax sector.”

An agreement signed to strengthen the fight against tax-related crimes

Striving to accomplish 2024 budget revenue goal

As 2024 unfolds, the Binh Thuan Provincial Tax Department is buoyed by support from various sectors and a unified business community. There is a collective optimism that economic impediments will ease, land management mechanisms will be streamlined, infrastructural investments will be bolstered, and provincial plans will gain approval, thereby nurturing a conducive environment for socio-economic prosperity.

The year 2024 stands as a pivotal juncture for Binh Thuan to realize the objectives of its Five-Year Development Plan (2021-2025), despite an array of challenges. With global economic expansion expected to decelerate, the province grapples with issues of modest growth quality, competitiveness, and economic scale, compounded by a constrained and volatile revenue base, and the looming threats of natural disasters and climate change. These elements exert considerable strain on the tax sector’s revenue collection efforts for 2024. Furthermore, the fiscal policies enacted in 2023, including tax reliefs and deferrals, are anticipated to significantly influence the revenue landscape in the ensuing year.

In response, the Binh Thuan tax sector has resolved to navigate these challenges with determination, aiming to fulfill the state budget revenue estimate set forth by the Ministry of Finance, the Provincial People’s Council, and the People’s Committee. Armed with actionable strategies, the tax sector is poised to fortify revenue management and curtail losses, particularly in business transactions and real estate transfers. Embracing the digital economy, the sector will adeptly manage emergent revenue streams, amplify outreach to support rural laborers, intensify tax inspections, combat transfer pricing and evasion, address outstanding debts with vigor, and maintain stringent oversight of tax refunds. Concurrently, there is a renewed emphasis on instilling discipline, revolutionizing work methodologies, and enhancing the accountability of public servants to execute their duties with utmost integrity.

By Cong Luan, Vietnam Business Forum