TAX REVENUE SURGES 17.6%

Budget revenue was estimated at VND775,262 billion in the first six months of 2022, equaling 66% of the full-year estimate and 117.6 % of the value a year earlier, said the report at a recent Tax Review Conference for the first half of 2022. Up to 60 out of 63 localities completed more than half of their full-year targets.

Revenue sources increase markedly

The sharp rise in tax revenue in the first month of this year is clearly showing post-pandemic economic recovery, said the General Department of Taxation. Domestic tax and fee revenue reached VND578,404 billion in the six-month period, equaling 63.2% of the full-year estimate and 113.1% of the value in the same period of 2021. If policy-led exemption and reduction factors are excluded, the collection value rose 5.9% year on year.

16 out of 19 sectors produced higher-than-estimated tax revenue (fulfilling over 55%), featured by SOEs whose tax payment was fulfilled by 56.8%, foreign-invested firms by 56.4%, and the private business sector by 67.7%. Personal income tax completed 77.4% of the plan while registration fee collection came up to 68.5%.

60 out of 63 provinces and cities completed more than 50% of their estimated values. Outperformers included Hung Yen, Thanh Hoa, Quang Binh, Quang Tri, Bac Giang, Quang Ngai, Phu Tho, Ba Ria-Vung Tau, Kon Tum, Thua Thien Hue and Ha Tinh

Particularly, revenue from crude oil and land rent surged. The former generated tax revenue of VND34,116 billion, equal to 121% of the estimate and up 80% year on year in the reporting period.

These outcomes reportedly resulted from tax modernization and business facilitation. Deputy Minister of Finance Vu Thi Mai emphasized that the tax sector must closely monitor the progress of the budget collection, and evaluate and analyze impactful factors and collection progress in each locality and field in the coming time.

Actively deploying e-invoices

The General Department of Taxation said that it will step up support for electronic tax declaration for individual taxpayers, particularly owners of rented houses. So far, the number of tax declarations sent to tax agencies is 110,505. Electronic registration fee declaration and payment for automobiles and motorbikes are applied in Hanoi and Ho Chi Minh City. Hanoi and Ho Chi Minh City received 52,863 and 62,142 electronic declarations respectively. Electronic registration fee declaration and payment service for individuals processed 166,690 application forms across the country by mid-June. Payment is processed via e-banking and mobile banking services.

By mid-June, 280,786 transactions of land tax payments filed by households and individuals to the National Service Portal were processed, collecting over VND1,224 billion of tax.

As for personal income tax, 770,281 electronic tax accounts have been granted to individual taxpayers. Tax offices received a total of 581,325 income tax finalization declarations from individuals.

Mr. Cao Anh Tuan, General Director of the General Department of Taxation, said, in order to accomplish the tasks in 2022, the tax sector will continue to implement consistent and comprehensive solutions to managing tax, combating tax loss and enhancing overdue tax collection in the last six months in order to exceed the full-year target value assigned by the National Assembly, the Government and the Ministry of Finance.

In addition, the tax sector will further focus on implementing tax exemption, reduction and payment extension packages in support of socioeconomic recovery and development programs and help businesses and people quickly restore production and business activities, thus creating momentums for economic growth.

By Le Hien, Vietnam Business Forum

Source: VCCI