Over 50% of budget revenue
The plan to collect 570 billion VND from Heineken Quang Nam Brewery out of 1,480 billion VND from the FDI enterprise sector has "failed". On average, the tax this enterprise must pay to the state budget according to the plan is 47.5 billion VND/month, but beer sales have decreased dramatically.
From over 5 million liters/month before, it has now dropped to only 1.7 million liters/month. The tax collected from this enterprise in the past 6 months was only about 80 billion VND (14% of the estimate). Land use fees were not much better, only 528 billion VND (19.6%). Hydropower also decreased; the revenue was only 534 billion VND (46.1% of the estimate).
Three of the four pillars of Quang Nam’s domestic budget revenue (automobiles, hydropower, beer and land use fees) have declined. A series of businesses, trade, tourism and services still do not have strong growth momentum.
Even in tourism, the number of visitors is increasing, but accommodation is not attractive enough to retain visitors, so the contribution to the budget of the local business sector is insignificant.
The Tax Department estimates the budget revenue for the whole year of 2024 to be about VND 20,111 billion, reaching 100.1% of the estimate. According to calculations, revenue from Truong Hai will be VND 9,500/9,300 billion, reaching 102.2% of the estimate; from hydropower VND 1,160 billion, reaching 100% of the estimate; revenue from Nam Hoi An Development Company Limited VND 470/400 billion, reaching 117.5%; from land use fees VND 1,880 billion, reaching 69.6% of the estimate and revenue from land rental fees VND 180 billion, reaching 105.9% of the estimate.
On the morning of July 2, the Department of Finance announced that domestic budget revenue in the first 6 months of the year had reached 50.51% of the estimate (VND 10,152 billion). Excluding land use fees and lottery, domestic revenue reached 55.3% of the estimate (VND 9,565 billion), up 6.8% over the same period. According to Ms. Phan Thi Thanh Thao - Deputy Director of the Department of Finance, many major revenue sources met and exceeded the estimated collection progress.
Analysis shows that the local state sector reached 62.9% of the estimate, the non-state industrial, commercial and service sector reached 54.9% (6,858 billion VND), up 18.6% over the same period.
According to Ms. Thao, the revenue of this area ensures progress, increasing compared to the same period thanks to the revenue from Truong Hai cars arising in December 2023, paid in January 2024 about 1,439 billion VND (1.93 times higher than the average collection progress according to the estimate).
Estimated revenue from Truong Hai in the first 6 months reached 51.2% of the estimate (4,763 billion VND), up 14.7% over the same period. The remaining revenue sources such as: personal income tax, environmental protection tax, registration fee, fees, charges, lottery, mineral exploitation rights... all met and exceeded the schedule.
The picture of domestic budget revenue is not complete. Revenue from the central state-owned enterprise sector only reached 45% of the estimate (VND 377 billion), the FDI sector only reached 47.7% of the estimate (VND 706 billion), and land rent only reached 19.6% of the estimate (VND 528 billion).
According to the Tax Department's calculations, the number of international and domestic tourists coming to visit and relax has increased, and the casino and golf course business activities of Nam Hoi An have had visitors, so the revenue from special consumption tax from these activities and entrance fees has increased compared to the same period.
However, despite reaching 72.5% of the estimate (VND 290 billion), an increase of 14.8%, Nam Hoi An could not make up for the shortage of beer, so the FDI sector could not reach the estimate.
Hydroelectric reservoirs are lacking water. Electricity output in the past 6 months has decreased significantly. Land exploitation projects are slow to auction land use rights. Real estate is frozen. Projects cannot be transferred. Enterprises are facing financial difficulties. Long-term debt is large, so the budget payment is low.
Collect enough budget, why not?
The Provincial People's Council set the domestic budget revenue for 2024 at about VND20,100 billion. If excluding VND2,800 billion from land use and lottery, domestic revenue will only be about VND17,300 billion.
This announced budget revenue figure is much lower than the 2023 estimate (VND 20,880 billion) and even lower than the actual revenue in 2023 (VND 21,445 billion). All major revenue targets this year are lower than the estimate and the actual revenue in 2023, except for land use fees, which increased by 17.4% of the estimate and increased by more than 35% compared to the actual revenue in 2023.
However, with the not-so-smooth developments, no one can specifically measure the positive or negative impacts of market fluctuations, especially policies to support businesses such as extending taxes... can the domestic budget revenue be achieved as set?
The brewery closed, the plan of 570 billion VND in beer revenue cannot come true. The land use revenue of 2,700 billion VND assigned seems impossible when there is no sign of real estate being unfrozen. It is expected that beer and land will lose about 1,500 billion VND.
Mr. Le Mai Khac Hung - Deputy Director of the Tax Department said that to achieve this revenue estimate, it is necessary to have the strong attention and direction of the Provincial Party Committee, People's Council, and Provincial People's Committee to promptly remove obstacles and difficulties for real estate enterprises; the support and coordination of departments and branches in the process of resolving administrative procedures, supporting real estate enterprises to stabilize production and business.
Mr. Tran Uc - Chairman of Dien Ban Town People's Committee said that the town will have about 2,000 billion VND from uncollected land and beer, and does not know how to compensate. If difficulties are resolved for real estate projects to be extended and specific land prices are issued, then there is hope of reaching the 2024 budget.
Unlike concerns about budget deficits, the Tax Department analyzes based on data in reviewing revenue sources that still have room. That is, monitoring the economic growth situation in the area, the ability of enterprises to recover production and business. Effectively implementing solutions to increase revenue in the last months of the year, making up for the shortage of beer and land use fees.
The tax extension policy is like a medicine, a mental therapy, giving businesses a chance to recover. The budget will not lose this revenue when the entire extension of more than 3,000 billion VND will be paid by businesses at the end of the year.
According to Mr. Dang Phong - Director of the Department of Finance, domestic budget revenue of over 50% is a success. The shortage of domestic revenue from land is not a concern yet.
“The land price will be able to be achieved once the valuation council is completed, then the tax amount (including land use debt of real estate projects) will be achieved this year.
By measuring the impacts on the economy, businesses can proactively develop realistic production and business plans, especially corporations and businesses with a large proportion of budget revenue. The 2024 domestic budget will not only be achieved but may even exceed revenue," said Mr. Phong.
Source: https://baoquangnam.vn/quang-nam-trong-suc-ep-thu-ngan-sach-3137387.html
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