Tax arrears increase, Ministry of Finance requests localities to coordinate tax management

Việt NamViệt Nam29/05/2024

The Ministry of Finance has asked local authorities and relevant departments and branches to strengthen management to combat tax arrears. (Photo: Vietnam+)
The Ministry of Finance recommends that local authorities and relevant departments and branches strengthen management to combat tax arrears.

On May 28, the Ministry of Finance informed that in 2024, budget collection will continue to face many difficulties and challenges as our country's economy is highly open and subject to many intertwined impacts. Accordingly, the Ministry has issued an official dispatch requesting localities to coordinate in directing tax management.

According to the Ministry of Finance, the amount of tax arrears in many localities in the first 4 months of the year is on the rise (especially debts for land use fees and land rent). In addition, the use of electronic invoices for each occurrence is a mandatory regulation for all transactions, but many businesses, organizations and individuals (in some industries) have not complied with it. Many people still do not have the habit of taking invoices when consuming, although the tax authorities have made many efforts to promote and implement the "Lucky Invoice" program to encourage consumers to take invoices.

Meanwhile, the Government has directed to strengthen the management and use of electronic invoices and promote the urging and handling of tax arrears collection up to December 31, 2024 on the total actual State budget revenue in 2024 not exceeding 8% and the total tax and fee debt by the end of 2024 not exceeding 5% of the total actual State budget revenue in the year.

On that basis, the Ministry of Finance proposed that local Party committees, authorities and relevant departments and branches establish a Steering Committee for the implementation of electronic invoices generated from cash registers in the area, headed by the leader of the provincial and municipal People's Committee and members representing the tax department, police, market management agencies and local departments.

In particular, all levels and sectors need to propagate and request businesses and business households that are subject to the application of electronic invoices generated from cash registers, focusing on areas of direct retail to consumers (such as restaurants, hotels, catering services, road passenger transport, gasoline, gold and silver trading, shopping malls, entertainment services, beauty services, retail of modern medicine, road fees, cable cars, etc.); register to apply electronic invoices generated from cash registers in 2024 (reaching at least 70% of the total number of businesses and business households subject to application according to the Tax Department's Implementation Plan).

Accordingly, all levels establish interdisciplinary inspection teams to inspect businesses and business households that have registered to apply electronic invoices and electronic invoices generated from cash registers to ensure that 100% of transactions are recorded and fully issued electronic invoices.

In addition, localities also need to establish a Steering Committee to urge the collection of tax arrears and land use fees and land rents in the province/city, with the leader of the provincial or city People's Committee as the head and members being representatives of departments, branches, etc.

Accordingly, the Steering Committee reviews the list of taxpayers with large tax debts in the area, determines specific recovery measures for each taxpayer, reports to the provincial and municipal People's Committees and organizes work to urge tax debt recovery. In addition, this Committee needs to direct relevant agencies in the area to closely coordinate with tax authorities to apply coercive measures as prescribed to recover tax arrears. For projects that are slow to implement, have long-term tax debts, and do not fulfill financial obligations to the State, the Steering Committee will advise the provincial and municipal People's Committees to carry out land recovery as prescribed...

HA (according to Vietnam+)

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