Management elevated to tackle tax revenue loss

In October 2024, the tax sector of the province achieved a tax collection rate of 95.2% of the estimate assigned by the Ministry of Finance and the provincial People's Council for 2024. However, tax arrears are on the rise, requiring the tax sector and related agencies to take decisive measures to complete the annual plan promptly and effectively combat tax loss.

Tax debts tend to rise

In 2024, the provincial tax department was assigned a revenue target of 48.079 trillion VND by the Ministry of Finance and the provincial People's Council, an increase of 2.826 trillion VND compared to 2023. In the first 10 months of 2024, the tax department collected 45.766 trillion VND, reaching 95.2% of the estimates set by the Ministry of Finance and the provincial People's Council, and increasing by 21.6% compared to the same period in 2023. Despite a significant increase in tax revenue, the situation of tax arrears among units and enterprises in the area has shown a tendency to increase compared to the same period last year. By the end of October 2024, the total tax arrears reached 3.9 trillion VND, accounting for 8.1% of the estimated tax revenue for 2024.

The provincial tax sector is determined to implement measures to combat tax revenue losses. In the photo: Tax officials guiding taxpayers on related procedures. Photo: Thanh Hong

According to the provincial tax department, the reason for tax debt is that businesses and production facilities are affected by unpredictable developments in the world situation. When businesses and production facilities face difficulties and lack the financial capacity to fulfill their tax obligations. In addition, there is a situation where businesses are holding onto capital, delaying loan repayments leading to tax debts; there are delays in tax payments due to some projects involving land that are being complained about but are still in the process of resolution; there are cases where the tax payment extension period has expired but the tax debtor has not complied with paying the tax. Along with that, some businesses owe large amounts of tax, even though the tax sector has implemented coercive measures, even banning country exit, they still have not been able to fulfill their tax obligations.

The tax sub-departments are strengthening coordination with relevant authorities to enhance efforts to combat tax revenue loss. In the photo: A taxpayer conducting a transaction at the Tax Sub-department of Thu Dau Mot city.

Mr. Nguyen Ky Phong, the head of the Di An City Tax Department, stated that encouraging and reminding businesses to pay taxes is a regular and continuous task aimed at increasing revenue for the state budget. Along with enhancing revenue collection solutions, it is also necessary to have appropriate measures for each type of business, as well as strong measures for businesses that delay tax payments. Accordingly, it is essential to raise the level of penalties for violations along with other forms of action to fundamentally address the chronic tax debt situation that currently exists.

Rational actions against loss

The leader of the provincial Tax Department reported that in the 10 months of 2024, the unit has conducted inspections and audits on 1,834 enterprises, with the total tax increase through these inspections and audits amounting to 433.9 billion VND. Regarding the collection and handling of tax debts, the tax industry has implemented measures to manage tax debts and address them through issuing tax debt notices. As a result, the tax sector has recovered tax debts arising amounting to 6,596 billion VND. The tax department has also issued 2,039 enforcement decisions and collected debts through enforcement totaling 1.132 trillion VND.

In 2024, the provincial tax sector aims to exceed the revenue target set by the Ministry of Finance and the provincial People's Council by 10%. To achieve this goal, the provincial Tax Department has requested its subunits to enhance the management of tax subjects, closely monitor revenue progress, promptly implement revenue management solutions, and exploit potential revenue increases; regularly assess the results and progress of implementation, and address any obstacles in the tax management process in a timely manner.

Mr. Ly Minh Khiet Tam, the head of the Tax Department for the Tan Uyen area, stated that the department is actively implementing tax collection solutions, specifically enhancing the management of e-commerce activities; resolutely conducting data exploitation and processing on the centralized tax database application to generate a list of households and individuals engaged in e-commerce for tax management review.

Tax officers guide taxpayers in carrying out related procedures

With the vigorous implementation of measures to combat revenue loss and recover tax debts, the provincial tax authority aims to exceed the target set by the Ministry of Finance and the provincial People's Council by 10% in 2024.

Reported by Thanh Hong – Translated by Vi Bao