Domestic Budget Revenue Reaches VND88,200 Billion in May

3:37:24 PM | 14/6/2019

Total budget revenue collected by the tax industry was estimated at VND508,608 billion in the first five months of 2019 ending May 31, equaling 43.5% of the estimate and rising 14.1% over the same period in 2018.

According to the General Department of Taxation, with VND88,200 billion collected in May (equivalent to 7.6% of the estimate), the total budget revenue collected by the tax sector was projected at VND508.608 billion (US$22.13 billion) in the first five months of 2019, equal to 43.5% of the estimate and up 14.1% over the same period in 2018. Of the sum, revenue from crude oil was estimated at VND23,371 billion, fulfilling 52.4% of the estimate; and domestic revenue was forecast at VND485,236 billion, reaching 43.2% of the estimate and rising 15% year on year. Excluding land use fees, dividends, remaining profits and lottery business, the revenue was estimated at VND405,588 billion, equal to 42.7% of the estimate and up 17% year on year. However, if the differential of incomes and outgoings of the State Bank was excluded, the value reached only 42% of the estimate and rose 12.2% over the same period of last year (unexpected income and policy-boosted income were not counted).

In a more detailed breakdown, according to the General Department of Taxation, out of 18 tax items, 11 were above the overall performance (over 43% of their estimates) and most grew from a year earlier. Some  well performing items included personal income tax (48.2% of the estimate and 18% higher than a year ago), registration fee (44.3% of the estimate and 20.8% higher than a year ago), resource and mineral royalty (fulfilling 98.6% of the estimate and up 18.3%), lottery (fulfilling 61.6% of the yearly plan and up 12.6% year on year), corporate tax revenue (up 14.5%). Accordingly, the central budget revenue was estimated at VND235,000 billion from January to May, fulfilling 41.5% of the estimate and rising 20.5% from a year ago. The local budget revenue was estimated at VND273,608 billion, equaling 45.5% of the estimate and up 9.1% year on year.

Given these outcomes, the General Department of Taxation said that the tax sector’s budget revenue collection met the progress. Particularly, under firm guidance and tasks assigned by the General Department, tax authorities at all levels took many solutions to inspect tax sources and recollect overdue tax. As of May 31, 2019, tax authorities collected VND13,390 billion of overdue tax, equaling 34.5% of tax overdue up to 90 days and more than 90 days as of December 31, 2018. Of the sum, VND10,246 billion was collected by debt management instruments and VND3,144 billion was taken by coercive measures.

In addition to its efforts to ensure budget collection plan, the General Department of Taxation accelerated measures to reform administrative procedures in the spirit of the Government’s guidance in Resolution 01, Resolution 02 and the Action Program of the Ministry of Finance.

Accordingly, 133 out of 304 tax administrative procedures have been provided online at Level 3 or higher. 705,753 enterprises registered to pay tax via banks, accounting for 97.82% of total active enterprises. They paid VND298,088 billion via banks in the five-month period. In the year to May 31, 2019, as many as 5,288 companies were refunded tax electronically, accounting for 94.73% of total refunded companies. A total of 10,027 refund records were received, reaching 96.14% of the total and 7,260 records got refunded electronically with a total value of over VND44,074 billion.

To streamline the apparatus as guided in the Central Resolution 18-NQ/TW and the Prime Minister's Decision 41/2018/QD-TTg, with many solutions to quicken the progress, the tax sector is merging tax branches in nine tax departments of Hung Yen, Ha Nam, Dak Lak, Da Nang, Lang Son, Soc Trang, Thua Thien - Hue, Ninh Thuan and Thai Nguyen while submitting to the Ministry of Finance a scheme for merging branches in 16 other localities.

Hien Le