Ensuring progress of budget revenue estimate

In 2021, tax authorities at all levels have so far performed well their task of budget collection in the context of the COVID-19 epidemic continuing to break out in many regions around the globe with new and more dangerous strains, affecting the socio-economic situation in almost all countries across the world.

Budget revenue in the first half of the year witnessed positive results, reaching over VND1.116 quadrillion (US$48.58 billion). (Photo: VNA)
Budget revenue in the first half of the year witnessed positive results, reaching over VND1.116 quadrillion (US$48.58 billion). (Photo: VNA)

However, thanks to the control of the epidemic situation in the country from the second half of 2020 with more favourable conditions created for domestic economic, production and business activities, in addition to the Government's timely and effective mechanisms and policies to support people and businesses, a driving force was created to promote economic growth between the fourth quarter of 2020 and the first quarter of 2021.

The General Department of Taxation (GDT) has implemented nine key tasks and 25 groups of solutions to concretise its assigned tasks. On that basis, the GDT has directed tax authorities at all levels to take advantage of the direction and leadership of Party committees and local authorities and the coordination of departments and branches to synchronously implement measures to ensure the management of budget revenue.

Revenue sources have been strictly controlled while the fight against revenue losses in association with promoting the reform of administrative procedures have been strengthened, creating favourable conditions for taxpayers, as well as stepping up the guidance and support of taxpayers in the implementation of Governmentdecrees and resolutions on removing difficulties inproduction and business. Strict management has been accelerated to limit tax arrears, contributing to creating amore equal business and production environment, as well as creating more sources of revenue for the state budget.

Budget revenue in the first half of the year witnessed positive results, reaching over VND1.116 quadrillion (US$48.58 billion). This was attributed to economic growth momentum from the end of 2020 and increased revenue from a number of revenue sources benefitingfrom fiscal and monetary policies in 2020, of which a number of sectors achieved high growth rates such as in banking, securities, real estate, automobile production and assembly, and so on.

According to the GDT, budget collection figures by region in the first six months of the year show that most localities achieved good progress in collecting revenue compared to their estimates. 48 localities collected more than 55% of their estimates; 12 localities achieved from 50% to 55% of their estimates. However, three localities with low collection progress (below 50%) are: Bac Kan, Son La, and Hoa Binh.

Revenue from the production and business sector (state-owned enterprises, foreign-invested enterprises and non-state-owned industry and trade, accounting for 52.4% of the total domestic revenue) was estimated at VND331.989 trillion, equalling 57.1% of the relevant estimate and 126.9% as compared to the same period in 2020.

A number of major taxes have achieved and exceeded their collection schedule as compared to their estimates, increasing sharply over the same period last year, specifically: corporate income tax is estimated at VND137.069 trillion, equalling 61.2% of the estimate and 129.1 % the amunt collected in the same period last year; special consumption tax, VND58.879 trillion (61% and 138.6%); value added tax, VND121.910 trillion (51.4% and 119.5%); personal income tax, VND73.027 trillion (67.7% and 112.8%).

Despite the implementation of Resolution No.954/UBTVQH14 dated June 2, 2020 on adjusting personal income tax deduction (applied from the tax year 2020) reducing personal income tax collection from salaries and wages (only about 97% over the same periodlast year), the exciting stock and real estate market in the last months of 2020 and early 2021 contributed to an increase in personal income tax revenue from securities transfer (2.91 times), from personal capital investment (up 78.2%) and from real estate transfer (up 68.8%), contributing to a significant increase in personal income tax collection in the first six months of 2021.

Right from the beginning of the year, the GDT has focused on implementing the directions of the National Assembly, the Government and the Ministry of Finance. It has also directed Tax Departments to carefully evaluate the results of budget collection in 2020, focusing on reviewing all revenue sources in each area according to each revenue and tax rate, and assigning specific tasks.

During the outbreaks of the COVID-19 epidemic, tax authorities at all levels have also focused on drastically implementing solutions, supporting taxpayers according to the guidelines and policies of the State, and strengthening revenue management, accelerating the reform of administrative procedures, creating afavourable conditions for taxpayers, as well as promptly solving difficulties and obstacles in revenue management, in order to perform budget collection tasks well in the first half of 2021 and across the remaining months of the year.