In 2018, it is expected that the domestic and international situations would be challenging as the central government is in need of more budget year on year, requiring local Department of Tax to rationally implement tax collection measures from the beginning of the year.
Efforts through the challenges
In 2017, the tax sector of Binh Duong continually faced difficulties in the collection process as key enterprises with large tax payments have still been in troubles. The consumption of cars decreased in the face of the prospered but unstable real estate market. The value added tax changed since July 1, 2016 did not carry out tax refund for negative of consecutive 12 months. In addition, corporate income tax policy was reduced from 22% to 20% while some enterprises have tax debts up to hundreds of billion Vietnam dongs. To solve these problems, right from the beginning of the year, the provincial tax department has set 12 core tasks with 7 main groups of solutions. Accordingly, the provincial tax department has organized tax training for new tax policy in 2017 with focus on inspecting, examining and urging the collection of tax arrears, and reforms of tax administration.
An unnamed enterprise representative registers for tax declaration at Binh Duong Provincial Department of Tax. Photo: Thanh Hong
Implementing these solutions has contributed to improving the sense of observance of tax policies and laws in fulfilling the tax obligations of enterprises. Along with that, implementation of Decree 45 of the Government, for land use debt of 5 years debt when due, households and individuals paying debts before the deadline should be supported to reduce the land use fee payable of 2% per annum. Some revenues were retained for the unit. In 2017, the provincial tax department collected nearly VND 32,609 billion, equivalent to 94.5% of the provincial People's Council's estimate and by 112.7% compared to 2016. In addition, the sector has maintained and improved the quality management system of ISO 9001:2008, meeting the requirements of tax administration.
Mai Hung Dung, Standing Deputy Chairman of the provincial People's Committee highly appreciated the efforts of the tax branch in implementing the task of collecting state budget in 2017 and affirmed that despite budget revenue target in 2017 and high delivery capacity compared with the ability to implement, the whole industry has strived to reach the maximum budget revenue. Along with that, the indicators, such as the collection of tax arrears, inspection, testing, online tax returns, anti-corruption tax payment are also well implemented.
Rationally from the beginning of the year
In order to carry out the task of tax collection assigned in 2018, the provincial Department of Tax shall carry out its main tasks and principal solutions, namely accelerating the reform of administrative procedures and modernizing the tax branch, strengthening internal discipline, timely implementing the circulars guiding the reform of administrative procedures, well performing the propaganda and support of taxpayers. At the same time, the professional level of cadres and civil servants of the tax branch has been improved to meet the requirements. Nguyen Minh Tam, Director of the Provincial Department of Tax, informed of VND 39,430 billion (+ 20.9% compared to 2017) while the provincial People's Council allocated VND 39,500 billion. In order to complete the plan, the key tasks and plans of the year have been concretized by the unit leaders with the basic and synchronous solution to achieve the plan of tax collection in the year.
The tax department has assigned debt collection targets to the specialized sections of tax department and divisions so as to ensure that tax debts up to the end of 2018 would not exceed 5% of the total annual budget revenue together with all the revenue, taxes, tax arrears to intensify the review, check and put into full management of taxpayers subject to tax declaration and payment. The unit also deployed to the tax departments the revenue management and non-state tax collection, focusing on reviewing, evaluating and analyzing the factors affecting the budget revenue sources, location, and clarification of revenues and losses and potential revenue sources. Particularly, the management of taxpayers is one of the key tasks of the sector in 2018. With the practical solutions, specific and the best effort from the beginning, Binh Duong Department of Tax targets is to achieve a budget for the whole year, creating a solid foundation for the whole period of budget stabilization in 2018-2020, contributing to ensuring budget revenue for the province.
Reported by Thanh Hong – Translated by Vi Bao
