Budget revenue flourishes post-COVID-19

According to the General Department of Taxation (Ministry of Finance), total estimated budget revenue by the end of October stood at VND979.7 trillion (US$42.3 billion), accounting for 78.1% of the estimate and as much as 93.9% over the same period in 2019.

Revenue from crude oil reached VND29.4 trillion, equalling 83.8% of the estimate. Domestic revenue was estimated at VND950.2 trillion, equivalent to 77.9% of the yearly estimate and 95.4% of the figure from the same period last year.

Thanks to the effective control of COVID-19, socio-economic activities have entered “new normal” state, helping to facilitate budget collection.

Industrial production in October continued to prosper, especially the processing and manufacturing sector, with an increase of 8.3% over the same period last year.

Domestic trade also continued its uptrend last month, with total retail sales of consumer goods and services increasing by 2.4% MoM and 6.1% YoY.

According to the tax authority, in addition to the positive signs of the economy, tax agencies across the nation are also putting great effort into implementing synchronous collection solutions to attribute to the above results.

The departments have continued to implement tax administrative procedure reform following IT projects to facilitate the work. Especially, they have accelerated the implementation and expanded the model of online tax declaration, electronic tax payment, electronic invoices with authentication codes from the tax authorities and electronic tax refund.

There were 794,134 enterprises participating in electronic tax declaration as of October 19, reaching 99.32% of the total.

From January 1 to October 19, businesses have made over 2.5 million electronic tax payment transactions with the total amount of over VND508 trillion and nearly US$28 million.

Also during the period, a total of 8,131 enterprises participated in electronic tax refund, reaching 95.85%. The tax system received and processed 15,367 records with total refunds reaching more than VND91 trillion.

Regarding electronic invoices, from January 1 to October 19 this year, over 1 million invoices have been issued with codes with the total revenue reaching more than VND28.3 trillion on issued invoices, including the tax collection worth VND2.5 trillion on such invoices.

In the last two months of the year, the taxation authority would have to collect around VND274.5 trillion (21.9% of the estimate) to fulfil this year’s set target. According to the department, it is quite a difficult task amid the complicated developments of COVID-19 around the world, as well as great damages due to natural disasters and flooding in the central region.

In striving to fulfil at the highest level for this year’s budget collection task, the General Department of Taxation has asked its chapters across the nation to review each revenue, tax rate, and estimated total budget revenue to seek for best solutions for State budget collection.