Budget revenue in early 2022 increases thanks to production recovery

According to the General Department of Taxation, budget revenue in the first 2 months of 2022 is quite good because the epidemic situation across the country continued to be kept under control, with production and business activities witnessing good recovery.

At a virtual meeting of the General Department of Taxation held on March 2. (Photo: TCT)
At a virtual meeting of the General Department of Taxation held on March 2. (Photo: TCT)

More than 270 trillion VND collected in the first two months of the year

In the first 2 months of 2022, The Government and the Prime Minister took drastic actions in directing ministries, branches and localities to implement synchronously, flexibly and effectively employing solutions to prevent and control the epidemic while protecting people's health, as well as implementing solutions on socio-economic recovery and development. In addition, the support packages for businesses and people to supplement resources to maintain, recover and develop production and business with the motto of flexible and safe adaptation have continued to be implemented effectively.

According to information from the General Department of Taxation, the total state budget revenue in February, 2022 managed by the tax agency was estimated at 118,000 billion VND, reaching 10.0% of the ordinance estimate, equivalent to a 132.0% rise over the same period last year. The total accumulated state budget revenue in the first two months of 2022 managed by the tax agency was estimated at over 276.6 trillion VND, equalling 23.5% of the ordinance estimate and 107.7 % of the figure from the same period in 2021.

According to the General Department of Taxation, budget revenue in the first 2 months of 2022 is quite good because the epidemic situation across the country continued to be controlled, production and business activities have seen a good recovery. The Government's supportive policies have been working well, the number of businesses that returned to operation in January 2022 increased by 195% over the same period last year.

The premise contributing to the quite satisfactory results of the budget revenue in January and February 2022 is attributed to economic growth and recovery.

Specifically, a number of industries that have made great contributions to the state budget had good growth compared to the same period last year, such as: processing industry, manufacturing increased by 2.8%; production of electrical equipment increased by 11.5%; costume production increased by 11.4%; metal ore mining increased by 21.9%, and export revenue increased by 1.6%, in which key products included aquatic products (up 42.9%), coffee (up 40.9%), and textiles and garments (up 24.2%).

In addition, the number of newly registered enterprises in January 2022 increased in both the number of enterprises and the amount of registered capital, investment capital from the State budget in January 2022 increased by 8.6% over the same period. Foreign direct investment capital disbursed in Vietnam in January 2022 increased by 6.8% over the same period last year.

In addition, the high domestic demand in the last months of 2021 and January 2022 before the Lunar New Year also help the total retail sales of consumer goods and services increase in January 2022.

Over 489,000 businesses registered to use e-invoices

The General Department of Taxation has coordinated with 55 Commercial Banks and 63 Tax Departments to deploy electronic tax payment services and mobilised businesses to use the service. As of February 18, 2022, the number of businesses that have registered to use the service with the tax agency is 843,663, approaching 99%.

The number of businesses that have completed service registration with the bank was 841,643, reaching 98.8%. From January 1, 2022, to February 18, 2022, businesses paid taxes through 1,012,520 electronic tax payment transactions to the value of over 122.68 trillion VND and over 5.87 million USD.

The General Department of Taxation has also connected with 7 commercial banks (VietcomBank, VietinBank, AgriBank, MBBank, VPBank, BIDV, TPBank) to provide electronic tax payment services for individuals. Accordingly, individuals can use electronic forms of tax payment through payment channels of banks such as Internet banking, Mobile banking, etc.

The General Department of Taxation also deployed the electronic tax application for mobile devices (eTax Mobile 1.0) from the end of 2021, with the number of tax payment transactions via the app between January 1, 2022, and February 18, 2022, hitting 1,793 transactions with a total amount of over 4.5 billion VND.

In addition, the electronic tax refund service has also widely been deployed. From January 1, 2022, to February 18, 2022, the total number of businesses participating in electronic tax refund was 2,411, reaching 99.1%. The number of electronic records was 2,886, reaching 99%. The system has processed tax refunds of 1,567 dossiers with total refunds amounting to more than 10.35 billion VND.

Regarding the implementation of e-invoices, at present, the system of 7 e-invoice deployment control centres at the General Department of Taxation and 6 Tax Departments have been operating smoothly, and a hotline was arranged and staff was assigned both during and outside office hours to ensure regular exchange, promptly answer and remove problems in the process of implementing e-invoices.

To date, more than 489,000 businesses have registered and used e-invoices according to the provisions of the Government’s Decree No.123/2020/ND-CP.

In order to continue implementing e-invoices in phase 2, the Ministry of Finance issued Decision No. 206/QD-BTC, dated February 24, 2022, on the application of e-invoices in 57 provinces, cities and provinces.

Pursuant to the Decision of the Ministry of Finance, the General Department of Taxation is urgently deploying information technology infrastructure to serve nationwide expansion; consolidating personnel of the Steering Committee, the Standing Team to deploy e-invoices at the General Department of Taxation and 57 local Tax Departments.

Translated by NDO