Struggling to collect state budget

In the first quarter of 2023, the total state budget revenue in the province reached nearly 14.7 trillion VND. Compared to the same period in 2022, state budget revenue decreased in both import-export and domestic revenue sectors.

Real estate “freezes” causing a large reduction in revenue for the budget. In photo: Aqua City project (Bien Hoa city). Photo: N. Lien

It is forecasted that in the second quarter, the state budget revenue situation is still not optimistic, partly due to the negative impact of the world economic situation. In particular, some areas that contribute to the province's large state budget revenue such as: industrial production, real estate, value added tax... are being severely affected, so the revenue has decreased significantly.

* Revenue from industry and real estate decreased sharply

According to the assessment of the Dong Nai Statistics Office, although there were forecasts of difficulties from the beginning of the year and solutions to overcome them, in the first months of 2023, the production and business situation of enterprises in general encountered many difficulties due to lack of production orders, sharp decline in export markets, and difficult product consumption. This caused workers to lack jobs, reduced income, and reduced spending and purchasing transactions, which significantly affected the State budget revenue from various sources.

In the first quarter of 2023, the total tax debt in the province is about 2.6 trillion VND, an increase of over 218 billion VND compared to the end of 2022. Of which, the tax debt that can be collected is over 2.3 trillion VND, and the tax debt that is difficult to collect is 283 billion VND.

Deputy Director of Dong Nai Customs Department Nguyen Phuc Tho said that in the first quarter of 2023, Dong Nai's state budget revenue from the import-export sector reached over VND3.4 trillion, only reaching 16.5% of the 2023 estimate and decreasing by over 33% compared to the same period in 2022. According to Mr. Tho, the main tax-imported goods in Dong Nai such as chemicals, iron and steel of all kinds, other base metals, plastics, rubber materials, etc. have all decreased. In addition, inflation and economic recession in many countries have increased rapidly, and global consumer demand has decreased, causing adverse impacts on import-export activities. Moreover, the management area of Dong Nai Customs does not have a border gate or international airport, while imported goods are mainly tax-exempt. Revenue from Dong Nai's import-export activities mainly relies on value-added tax of new investment projects, enterprises expanding production, importing raw materials and supplies to produce taxable domestic goods...

According to Deputy Director in charge of Dong Nai Tax Department Nguyen Toan Thang, since the end of 2022, the production and business situation of a number of enterprises in the province has encountered many difficulties, low profits or losses due to reduced output, narrowed export markets... which have directly impacted the income of workers. In addition, major sources of revenue from value added tax, real estate transfers, project transfers, capital... have all decreased sharply, which has greatly affected the state budget revenue.

* Difficulties continue

According to forecasts from the authorities, the state budget revenue in the second quarter of this year will continue to face difficulties. Deputy Director in charge of the Dong Nai Tax Department Nguyen Toan Thang commented that many production sectors in the province are still in decline, and land revenue sources have not improved, especially large revenue sources such as: personal income tax, real estate...

Faced with common difficulties, the tax sector is making efforts to implement solutions to exploit revenue sources, including promoting the implementation of policies to support enterprises in recovering and developing production and business; exploiting revenue sources from capital transfer, personal income tax for people with income from 2 places, temporary basic construction works, construction projects in the area such as: Long Thanh International Airport, airport connection works...

Mr. Thang shared: “Currently, the province has about 10 projects completing procedures for auction, with an estimated total value of land lots of about 1 trillion VND. This is also a significant source of revenue in the current context. However, the real estate market is slowing down, so the tax sector still has to mobilize all resources to exploit state budget revenue.”

Director of the Department of Finance Truong Thi Huong Binh said that, in the face of difficulties in state budget collection, since the beginning of the year, the Finance sector has been coordinating with tax and customs units to grasp developments and information related to the domestic and international socio-economic situation to promptly make forecasts and analyze impacts and influences on the budget collection situation in the area. From there, advise provincial leaders on solutions in orienting, directing and managing the budget. At the same time, the Department of Finance will continue to closely monitor state budget revenue to have measures to balance and ensure spending tasks, in which priority is given to spending in the fields of social security, national defense, security, etc.

Ngoc Lien

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