Economic Sector

Last updated: Tuesday, February 19, 2019


Solutions to Tax Loss Prevention: Stamps Sealed on Pump Meters

Posted: Wednesday, April 12, 2017

Environmental protection tax has increased by 10 - 15 per cent since tax authorities sealed stamps on pumping meters in more than 10,000 filling stations and over 30,000 gasoline pumps, said Mr Nguyen Van Thuy, Deputy Director General of the Department of Large Enterprises under the General Department of Taxation, at the press conference titled “Deploying a solution to seal stamps on pump meters at petroleum business units and prevent loss of the State Budget” recently held in Hanoi.

He said that after considering and analysing the solution on sealing stamps on petroleum pump meters from the initiative of the Lam Dong Tax Department and the Nghe An Tax Department, the Ministry of Finance commented that this is an effective solution suitable to reality guidance and broad application. Accordingly, in September 2016, the Ministry of Finance sent an official dispatch to chairpersons of Provincial/Municipal People’s Committee to request a directive coordination in administering petroleum business operations by sealing stamps on general meters. On that basis, authorities communicated on mass media to inform enterprises and petroleum traders of the policy to follow. The Departments of Industry and Trade and the Departments of Science and Technology worked closely with tax offices to set up inter-agency inspection missions to seal up stamps on gasoline meters to make sure that petroleum is sold with right quantity and quality and tax is fully collected.

With consistent solutions, after more than five months of implementation, 46 provinces and cities have sealed stamps at pumping stations. Dak Nong province and An Giang province are sealing pump metres, while 10 provinces and cities have issued decisions to deploy the work soon. According to the General Department of Taxation, up to now, a total of more than 10,000 petroleum filling facilities with 30,121 pumps have been sealed with stamps. After surveying and working directly with big petroleum trading companies such as Vietnam National Petroleum Corporation, Military Petroleum Corporation, PetroVietnam Oil Corporation and Saigon Petrol, all supported for sealing administrative stamps at pumping stations. This measure supported management while leaving no impacts on legitimate business performance.

In some provinces, after stamps were sealed, the amount of petroleum sold and the value of money collected for the State Budget both picked up. Specifically, in Nghe An Province, after the sealing was completed in November 2015, petroleum sales and environmental tax jumped 20 per cent from a year earlier. In Quang Ninh province, after stamping was finished in late November, petroleum sales and environmental tax looked up approximately 15 per cent a month on average. In Thai Binh province, after stamping in November 2016, sales jumped an average of 14 per cent. In Binh Dinh province, after the sealing was completed in December 2016, sales and environmental protection tax also looked about 14 per cent.

A representative from the General Department of Taxation said that, in the coming time, local tax departments will advise remaining provinces and cities to ratify and deploy the solution. At the same time, assessment criteria will be standardised to objectively and accurately gauge the sealing. In the long term, the tax sector will continue to research scientific and technological applications, invest in equipment and prepare the legal foundation for applying electronic invoices to all petroleum stores, branches and companies and connect electronic invoice data with tax authorities. The remaining 17 provinces and cities are expected to complete stamping in April 2017.

Hien Hung

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