Increase budget revenue without affecting the "health" of businesses

Implement many solutions to increase budget revenue

On the morning of May 23, speaking at the discussion session at the National Assembly group, Minister of Finance Ho Duc Phoc - National Assembly delegate of Binh Dinh province said that 2022 is the first year of implementing electronic invoices (from July 1, 2022), contributing to increasing the State budget revenue with a significant increase.

2022 is also the year the Ministry of Finance will implement the collection of real estate transfer tax in accordance with the provisions of the Law on Tax Administration, thereby contributing to increasing the budget revenue by about 21,000 billion VND.

Explaining the concerns of National Assembly deputies about fiscal policy management, especially the decrease in budget collection rate in 2023 compared to 2022, Minister Ho Duc Phoc stated that the reason why budget collection rate in 2023 is lower than in 2022 is because in 2022 the economic growth rate is 8.02%, while the growth rate in 2023 is only 5.05%.

In addition, in 2023, domestic tax will decrease by about VND27,000 billion, or about 2% compared to 2022. Revenue from crude oil alone will only reach 79% because the oil price in 2022 was 104.7 USD/barrel but in 2023 it will decrease to only 88 USD/barrel. This will reduce budget revenue in 2023, reaching only about 79.4%, or a decrease of VND16,000 billion.

Minister of Finance Ho Duc Phoc.

In addition, regarding import and export in 2023, due to inflation and the prolonged conflict between Russia and Ukraine, countries tightened spending, affecting Vietnam's import and export. Accordingly, import and export last year decreased by VND 66,800 billion, reaching 76.6%.

"Those are the main reasons why the budget collection rate in 2023 will not be as good as in 2022," the Minister said.

The Minister added that in that context, the Ministry of Finance has made every effort to find measures to increase budget revenue without affecting the "health" of enterprises, as well as production and business activities.

Accordingly, the Ministry has found solutions to collect potential revenues, revenues that have not been collected before, such as from cross-border e-commerce platforms.

According to the Minister, 2022 is also the year to deploy the electronic information portal and collect taxes from cross-border e-commerce platforms; at the same time, implement the "lucky invoice" program.

Accordingly, there are currently 93 foreign technology organizations and companies that have paid taxes in Vietnam, such as YouTube, Google, Facebook, Microsoft... that have declared and paid taxes on the Ministry of Finance's cross-border e-commerce tax payment portal, reaching 14,500 billion VND.

Continue to reduce VAT by 2% until the end of 2024

Regarding tax collection on domestic e-commerce platforms, Minister Ho Duc Phoc stated that this year, the Ministry of Finance will focus on tax collection on online trading. Accordingly, the Ministry has connected the tax authority's database to the population database of the Ministry of Public Security and coordinated with the State Bank to control payments on e-commerce platforms.

The Ministry also proposed that the State Bank increase non-cash payments. Through this, taxes will be collected in this field. The Minister informed that in the past two quarters, nearly 50,000 billion VND has been collected from these revenues.

“This is a great effort by the Ministry of Finance, with initiatives, creativity, and pioneering in technology application, it can be implemented,” the Minister emphasized, and said that software has been built to control electronic invoices and online electronic invoices to prevent fraud in value-added tax (VAT) refunds.

The Government is proposing to the National Assembly a plan to continue reducing VAT from 10% to 8% in the last 6 months of 2024.

In addition, the Ministry also proposed a solution to connect cash registers in restaurants, hotels, and businesses to tax authorities, and at the same time proposed a solution to spin invoices according to lucky invoice codes... to encourage people to get invoices, and if they win the code, they will be rewarded.

Recently, the Ministry of Finance has implemented the issuance of electronic invoices for each sale for petrol stations nationwide. In just a short time, 100% of stores nationwide have issued invoices for each sale. This data is also connected to the data of the tax authorities.

“We must constantly be creative, have initiatives, and properly apply the law to collect potential revenues, collect correctly and fully for the budget in the context of the country's economy and businesses facing many difficulties,” said Minister Ho Duc Phoc.

Regarding fiscal policies to ease people's burdens and support businesses, Minister Ho Duc Phoc said that this year, the Ministry of Finance continues to implement solutions on taxes, fees, and charges to support businesses and people. Over the past 3 years, each year, many taxes, fees, charges, and land rents have been reduced and extended by an average of about 200,000 billion VND/year.

Along with that, the National Assembly is currently proposing a plan to continue reducing VAT from 10% to 8% in the last 6 months of 2024 for many subjects as is being implemented.

“These are solutions to support businesses and people, increase budget collection, balance fiscal policies, use increased and excess revenue to invest in highway systems, airports, ports, and key national projects,” the Minister informed .

Source: https://www.nguoiduatin.vn/tang-thu-ngan-sach-nhung-khong-lam-anh-huong-den-suc-khoe-dn-a664938.html