Tax revenues beat estimates for 10.2 percent rise

Total tax revenues reached VND806,378 billion (US$35.96 billion) last year accounting for 110.2 percent of estimates, reported the General Department of Taxation on February 26.

Of the total revenues, crude oil brought VND67,510 billion accounting for 72.6 percent estimates. Domestic revenues hit VND738,868 billion accounting for  115.7 percent estimates.

Sixty one out of 63 provinces and cities in the country obtained their ordinance estimates. Quang Ngai and Ba Ria-Vung Tau provinces failed to complete the assigned norms because of the global drop of oil and gas prices.

Tax agencies inspected 79,297 businesses, reduced their declared losses by VND23 trillion and reclaimed tax arrears of over VND12,350 billion.

They also inspected 4,751 enterprises reporting losses, showing signs of transfer pricing and conducting related party transactions, which result in a loss reduction of VND10,050 billion and the collection of VND1,063 billion arrears and penalties.

This year the tax industry said it would strive to increase domestic revenues excluding crude oil by 8 percent compared to estimates by the National Assembly and the Government’s ordinance, which totals VND809,500 billion including VND54,500 crude oil and VND755 trillion domestic revenues.

According to Deputy Minister of Finance Do Hoang Anh Tuan, crude oil price has approximated only US$33 a barrel for the last two months.

If this trend continues in the upcoming time, there will have a spending transfer from the central to local budgets because cost price decrease will boost production and increase local revenues but slash the central budget, he said.

Measures should be carried out to solve production and trading difficulties, intensify administrative reform and fight against transfer pricing to obtain budget norms in 2016, he added.

Tax agencies in 63 provinces are responsible for collecting VND70 trillion arrears except VND25 trillion irresistible debts, he asked.

Revenue sources should be restructured to ensure that domestic revenues will account for over 80 percent of the total budget collection this year. The rate averaged 70 percent for the last five years.

By Ha My – Translated by Hai Mien

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