Period 2: Remove difficulties to increase revenue for the budget
Decree 52 of the Government has a very important significance, creating favorable conditions for businesses and individuals to have more financial resources to maintain and restore production and business due to the impact of Covid-19 epidemic. However, the implementation of Decree No. 52 will reduce budget revenue in the third quarter of 2021 and create pressure for the budget revenue collection of the Tax sector in the last two months of the year.
Implementing Decree No. 52, Eiffel Yarn Joint Stock Company (Gia Le Industrial Park, Thai Binh City) was extended more than 9 billion VND of taxes of all kinds.
The nature of Decree No. 52 is that it does not exempt or cut tax, but only temporarily postpones the time to perform tax obligations to the State. Therefore, after the extension period expires, the taxpayers still have to fully complete the extended tax amount in strict accordance with the regulations. This will cause difficulties for taxpayers at the end of the year if the taxpayers do not have an effective business plan and strategy. Determining this important point, thus in addition to strengthening propaganda so that taxpayers grasp thoroughly about the subjects of application, deadline for extension of taxes and land rental, order and procedures for extension; tax authorities at all levels also emphasize the nature of the Decree for taxpayers to understand, on that basis, have an appropriate business plan to ensure financial resources to pay taxes after the extension period expires.
Along with that, the Tax sector also actively promotes experience from the implementation of Decree 41 in 2020; because the fact of implementation of Decree 41 showed that, because the taxpayers were extended the tax and land rental, by the end of November 2020, the total budget revenue implemented by the Tax sector only reached 83.9 % of the estimate; in which tax, fee and other collection after deducting land use fee reached 74.4% of the estimate. But by the synchronous, drastic and effective implementation of solutions, in just 31 days of December 2020, the whole sector collected additionally 1,902 billion VND, equal to 1/3 of the revenue of 11 months; thereby raising the total budget revenue of the Tax sector in 2020 to 7,746 billion VND, exceeding 11.2% of the estimate of the Ministry of Finance with an absolute amount exceeding 782 billion VND, in which the revenue from taxes, fees and other revenues after deducting land use fee reached 92.2% of the estimate, equaling 83.2% compared to 2019.
Implementing Decree No. 52, it is estimated that in 2021, Thai Binh province will have about 1,000 businesses to be extended tax and land rental with the extended tax amount of about 520 billion VND. Meanwhile, in order to complete the assigned estimate, in the last 6 months of 2021, the tax sector will have to collect at least 3,395 billion VND, in which 639 billion VND will be collected from land use fee and 2,756 billion VND will be collected from taxes and fees. However, with the available experience and active and effective implementation of solutions, it is hoped that in 2021, the Tax sector will continue to successfully complete the task of budget revenue, thereby contributing to the economic growth of the province.
Transaction activity at the one-door division of Tax Agency of Thai Binh city - Vu Thu area.
It is estimated that in 2021, the whole province will have about 1,000 businesses to be extended tax and land rental under Decree 52 with the extended tax amount of about 520 billion VND. In the photo: Production at Thien Oanh Garment Co., Ltd (Quang Trung commune, Kien Xuong district).
Mr. Do Hong Nam, Director of the Provincial Department of Taxation
Mr. Vu Ngoc Tuyen, Vice Director of Tax Agency of Quynh Phu - Hung Ha area
Up to now, the Agency has received 67 documents of taxpayers to enjoy the extension of tax and land rental under Decree No. 52 with a total extended tax amount of more than 24 billion VND, in which value added tax is over 23 billion VND and the land rental is nearly 1 billion VND. By the end of June 2021, the total budget revenue implemented by the Agency reached over 298 billion VND, reaching 144% of the ordinance estimate; in which the revenue from taxes, fees and other revenues after deducting land use fee reached nearly 81 billion VND, reaching 59% of the ordinance estimate. In order for Decree No. 52 to not affect budget revenue and ensure the completion of the estimate of over 207 billion VND, in the coming time, Tax Agency of Quynh Phu - Hung Ha Area will focus on reviewing the redundant revenues, due debts to be receivable, urge to collect timely into the budget; strengthen the inspection at the taxpayer’s headquarters to complete the assigned tasks; follow close on the extended taxes when they are due, then timely supervise and speed up to pay into the state budget.
Mr. Nguyen Thien Huy, Director of Eiffel Yarn Joint Stock Company (Gia Le Industrial Park, Thai Binh City)