Tax Sector Exceeding Revenue Targets

Budget revenues of the province reached VND3,750 billion, accounting for 97 percent of the target assigned by the central government. This ratio is higher than the national average. However, this only reached 62 percent of the target set by the Provincial People Council. That revenue is lower than the targets is primarily because revenue of previous years were high, this year's target is high, yet generates lower revenue. Specifically, contractor tax of Formosa company submitted VND1,527 billion in this period of 2013 and VND1,562 billion in the whole year of 2013. In the first 11 months of 2013, incurred tax of Formosa increased. However, the company transfer from local contractor tax required by the tax sector to customs import tax export tax, thus import-export tax has reached nearly VND6,000 billion, while local contractor tax only VND627 billion, VND900 billion lower than last year. Nevertheless, the total domestic revenue has so far reached VND3,750 billion, 102 percent over the same period. Therefore, excluding Formosa, the tax revenue from other sectors had increased by VND958 billion over the same period of 2013; and this figure would continue to increase at the end of 2014. Never before has local tax increased that much. We consider this as the effort to resolve the province's tax work.

 

Along with firmly promoting the state budget revenues, from early 2014 until now, the tax sector of Ha Tinh has had many solutions as follows:

 

The tax sector has cut down administrative procedures and reduced the time required for compliance with tax laws. It also has minimized the administrative procedures prescribed by the Ministry of Finance, namely: According to regulation, the maximum time to settle registered tax records is 03 days, the tax sector is striving to draw down a maximum of 02 days for tax registration, 04 days for tax refund before checking (from 06 days), 25 days for tax refund after checking (from 40 days), 20 days for tax exemption (from 30 days), 02 days for confirming completion of the tax obligation (from 05 days), 07 days for extending tax refund registration (from 10 days), 07 days for tax policy guidance by documents (from10 days), 05 days for tax examining and 15 days for tax inspection. The tax sector is striving not to extend the time of inspecting and examining, so simple inspection doesn't exceed 5-7 business days.

 

The tax sector is expanding online tax registration and information management exchange. At present, there are 2,531 businesses in the province implementing tax registration over the Internet; currently, the tax department has been encouraging all businesses in the province to perform tax registration online to reduce the time, costs and personnel of enterprises and tax authorities. On the other hand, in order to create favourable conditions for taxpayers, the tax sector of Ha Tinh has signed a collaboration agreement with the banks in the province so that taxpayers can pay taxes at transaction points or authorized banks where organizations or individuals have accounts to deposit into the state budget.

 

Also, the tax sector of Ha Tinh has enhanced contact and dialogue. Besides regular propaganda activities and guidance policies on local tax laws on the mass media, the tax department of Ha Tinh annually organizes a dialogue conference to honour businesses and entrepreneurs observing tax policy well. In addition, it often holds dialogues with businesses to address difficulties and problems in the implementation of policies and tax laws. At the same time, it opens training sessions on tax policy whenever there are changes, specifically in value-added tax, enterprise revenue tax, personal income tax, and receipts.