Domestic budget collection in 2024, Quang Nam is more successful than expected

Truong Hai is the champion in domestic budget contribution, saving the entire local economy.

Total estimated revenue as of December 31 exceeded nearly VND2,600 billion compared to the figure set by the Provincial People's Council (VND20,100 billion). Tax data analysis shows that up to 15/17 important domestic revenue targets have been achieved and exceeded the assigned estimate, even increasing significantly compared to the implementation in 2023.

The non-state enterprise sector reached 126.4% (up 14.6%), personal income tax reached 118.4% (up 6%), environmental protection tax reached 114% (up 11.4%), fees and charges reached 126.2% (up 13.8%), revenue from lottery activities reached 107.1% (up 5.2%)...

And 10/10 tax branches have met the assigned estimates. Most have increased compared to actual revenue in 2023, except Dai Loc, Phuoc Son - Nam Giang, Dong Giang - Tay Giang.

There is a difference between the four "tax pillars". These are the main revenues, which have a major impact on the success or failure of local budgets. Truong Hai Group only paid more than VND 5,157 billion to the budget (equal to 45.8% of the estimate, including the January 2024 payment for the December 2023 tax declaration of about VND 1,664 billion) and "unexpectedly" ended 2024 with a budget payment of up to VND 12,960 billion, reaching 129.5% of the estimate, an increase of 17.2% compared to 2023!

The remaining three pillars are hydropower, reaching 106% of the estimate (VND 1,230 billion, equal to 98% in 2023); revenue from Heineken Quang Nam Brewery Company Limited Branch only reached 17.5% (VND 100 billion/VND 570 billion) and land use fees only reached 33.3% (VND 900 billion) because the real estate market has not yet recovered.

The number of international visitors increased, the casino and golf course business in Nam Hoi An was effective, budget contribution increased by 35.1% (659 billion VND), tourism businesses recovered strongly and contractor tax increased, but still could not make up for the loss of 470 billion VND from the brewery "leaving the market".

This instability has led to 2/17 domestic revenue targets not meeting the estimate (land use fees 33.3% and revenue from FDI enterprises only reaching 95.6% of the estimate (VND 1,415 billion).

According to calculations, the revenue shortfall from beer, hydroelectricity and land use fees has reached more than 2,300 billion VND, but domestic budget revenue exceeding the estimate is a big surprise, beyond the expectations of the tax authorities.

The above statistics, especially the strong tax growth of the non-state enterprise sector, show that although thousands of enterprises had to leave the market and many factories closed, the economy still showed signs of recovery, overcoming negative growth of 8.25% to reach a growth rate of 7.1%.

Meetings and sharing difficulties with businesses by local leaders have given businesses more strength to increase production, business, and contribute to the budget.

This shows that not all businesses are in dire straits. The business community is still able to maintain operations. Many businesses still have the financial resources and market to expand their production and business capacity.

The tax authority assessed that, despite the shortfall in revenue from land rent or the FDI sector, the large increase in tax revenue from Truong Hai and Nam Hoi An (exceeding nearly VND3,000 billion), plus many small revenues from other domestic revenues (personal income tax - VND1,030 billion; environmental protection tax - VND422 billion; revenue from remaining enterprises and business households - VND3,130 billion; registration fee - VND355 billion...) has made up for the shortfall in beer, hydropower and land use fees, to obtain an increase in revenue for the Quang Nam budget.

This more successful domestic budget collection than expected shows the efforts of tax authorities in anticipating difficulties, planning, specific budget collection programs or reviewing revenue sources with room for improvement... proactively exploiting revenue sources thoroughly, limiting budget losses.

However, in addition to the internal capacity of enterprises, we must also mention good policies from the Government (tax extension, exemption and reduction of registration fees...) as medicine, mental therapy, adding strength to give enterprises the opportunity to recover.

The policy of reducing registration fees and extending special consumption tax helps businesses have enough financial resources or increase production and consumption of products in the market.

Truong Hai’s growth is the clearest proof of the effectiveness of this policy. Thanks to this “therapy”, in just the last 6 months of the year, Truong Hai paid the budget more than 7,803 billion VND, an increase of more than 51.3% compared to the first 6 months of the year.

Mr. Nguyen Van Tiep - Director of the Tax Department said that the plan to collect 570 billion VND from Heineken Quang Nam Brewery out of 1,480 billion VND from the FDI enterprise sector "failed".

The revenue from land use is assigned at 2,700 billion VND, which is impossible. Just counting the revenue from beer and land, there will be a deficit of over 2,300 billion VND. We don't know where to find the compensation to be able to collect the full budget of 20,100 billion VND as determined by the Provincial People's Council.

Thanks to the policy of reducing 50% of registration fees, the tax revenue from Truong Hai increased strongly, contributing to promoting local economic growth and "saving" the domestic budget to reach a positive figure. Without this policy, it is difficult to be optimistic about the domestic budget of Quang Nam.

In addition to this breakthrough factor, the simultaneous growth of other taxes and tax sectors also contributed to the achievements of local budget revenue. Speaking at the tax review conference, on behalf of the provincial leaders, Vice Chairman of the Provincial People's Committee Tran Nam Hung acknowledged and highly appreciated the efforts of the tax sector in resolutely managing revenue sources, strengthening the collection base, and preventing budget losses.

“The tax authority has regularly and closely monitored the progress of budget collection; analyzed and forecasted the situation and impacts on budget collection. Identified potential revenue sources, areas and types of taxes at risk of revenue loss, promptly proposed to the Provincial People's Committee to direct solutions to manage budget collection. Thereby, the budget collection estimate for 2024 has been completed at the highest level!” - Mr. Hung said.

Source: https://baoquangnam.vn/thu-ngan-sach-noi-dia-2024-quang-nam-thanh-cong-hon-ca-mong-doi-3146850.html