Although the province's domestic revenue in the first 6 months of 2023 reached quite well compared to the estimate, the total budget revenue still has many concerns in the context of difficulties...
Major revenue declines
Ms. Tran Thi Dieu Hoang - Director of the Provincial Tax Department said: The province's estimated domestic budget revenue in the first 6 months reached 4,671 billion VND, equal to 54.3% of the estimate. Although the revenue was quite good compared to the annual estimate, this was the lowest level in the past 2 years, with a gradual downward trend and a decrease of 19.4% compared to the same period last year. Of which, tax, fee and other revenue is estimated at 4,401 billion VND, equal to 59.4% of the estimate, down 10.4% and revenue from real estate is estimated at 270 billion VND, equal to 22.5% of the estimate and down 69.38%.
Of the 16 revenue items, the revenue collection area has 9 revenue items with good collection progress (over 54% of the estimate) and 4 revenue items with high growth, which are revenue from local state-owned enterprises (SOEs) equal to 77.9% of the estimate, up 31.8%; revenue from foreign-invested enterprises equal to 81.4% of the estimate, up 68.7%; lottery revenue equal to 66.6% of the estimate, up 30.4% and fee and charge revenue equal to 52.7%, up 9.6%. However, there are still 7 revenue items that are lower than the estimate, the decrease occurs widely across most revenue items, with 12 tax revenue items decreasing, mainly accounting for a large proportion.
Revenue from thermal power plants decreases - photo by N.Lan
Specifically, the revenue of central state-owned enterprises is estimated to decrease by 34.9%, mainly due to the reduction in capacity of Vinh Tan thermal power plants due to high prices of imported raw coal, and the remaining revenue from hydropower plants with low payments in the first months of the year. As for non-state revenue, it is estimated to decrease by 7.05%, mainly due to the decrease in real estate transfer activities of projects under Novaland Group, from enterprises constructing expressways, etc.
In addition, land use fees, land rents, and taxes and fees from real estate transfer and trading activities, which account for a large proportion of revenues in most localities, have reached VND401 billion in the past 6 months, down 71.9%. The reason is that the real estate market is sluggish, real estate transactions and land use conversion among the people have decreased significantly. Difficulties in planning, land allocation, land auctions and site clearance have led to a significant decrease in land-related revenues. In addition, the impact of a number of policies to reduce environmental protection taxes under Resolution No. 20 of the National Assembly Standing Committee on environmental protection taxes has decreased by 39.1%. For districts, towns and cities, 6/10 localities are expected to have good collection progress compared to the estimate (over 55% of the estimate), including: Bac Binh, Ham Thuan Bac, Ham Thuan Nam, Duc Linh, Tanh Linh, Phu Quy...
Focus on exploiting sustainable sources of income - photo by N.Lan
Difficulties continue
Despite such difficulties, along with the proactive implementation of tax management and administration solutions by the Tax Department, the positive factors of the provincial economy have promoted revenue growth to offset the revenue shortfall. In particular, the event of Binh Thuan hosting the National Tourism Year attracted many domestic and international tourists to visit and relax; the Dau Giay - Phan Thiet expressway connecting with the key economic region in the south contributed to the flourishing of tourism activities, leading to a number of economic indicators growing higher than the same period, the province's GRDP increased by 7.76%...
According to the Tax Department's forecast, in the remaining 6 months of 2023, the province's state budget revenue will continue to be affected by many factors. In particular, the province's revenue structure is still unstable, there is no main source of revenue, and it still depends on revenues from land and lottery (accounting for 26.3% of total domestic revenue in 2022). The real estate market is difficult, projects in the province have not yet determined specific land prices to calculate land use fees, leading to a decrease in many related revenues and taxes. In addition, revenue from power plants has decreased sharply and the impact of the Government's tax exemption and extension policies, it is expected that 7/16 revenues will be difficult to complete according to the assigned estimates.
To achieve the highest budget revenue estimate in 2023, the Tax sector has proposed many tasks and drastic solutions. Ms. Tran Thi Dieu Hoang - Director of the Provincial Tax Department has proposed that local leaders establish a Steering Committee for collecting and preventing state budget losses in the province; encourage investors and large enterprises outside the province when investing and doing business in the province to ensure the establishment of enterprises and branches to declare and pay taxes, fulfill financial obligations to nurture and create a sustainable source of revenue for the budget. At the same time, further strengthen the coordination between departments, branches and localities to resolve difficulties in tax management such as debt collection; review land-related projects that have not been implemented or are behind schedule, and projects with problems to promptly remove difficulties to exploit land revenue to compensate for revenue shortfalls.
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