Quang Nam makes a spectacular comeback, surpassing budget revenue in 2024

Tax revenue from import and export reached 122.8% of the estimate, of which 80% was from Truong Hai (VND 3,440 billion). Photo: TD

Domestic revenue and exports both increased

The Department of Finance said that if import-export tax revenue increases by 22.8% (4,300 billion/3,500 billion VND), domestic budget revenue will also increase by 8% (21,700 billion/20,100 billion VND). Truong Hai alone contributes more than 60% of domestic budget revenue and 80% of import-export tax revenue.

Mr. Dang Phong - Director of the Department of Finance said that the financial sector has measured and forecasted the impacts on the economy , so it has proactively oriented and enterprises have built plans, made efforts to produce and do business close to reality, especially key corporations and enterprises with a large proportion of budget revenue, helping the budget exceed revenue.

This announcement has removed doubts about budget deficit concerns, however the picture of domestic budget revenue is not complete. Only 2/5 "pillars" of local budget revenue have grown.

According to the analysis of the Quang Nam Tax Department, compared to the estimate, Truong Hai's estimated revenue increased by 25.3% (about 11,650 billion/9,300 billion VND). This growth is thanks to the revenue generated in December 2023 (paid in January 2024) and from September 2024 when the policy of reducing 50% of registration fees officially takes effect.

The festivals have attracted a large number of domestic and international visitors to visit and relax, so the casino and golf course business of Nam Hoi An has developed, pushing revenue to exceed 250 billion VND (650 billion/400 billion VND), reaching 162.51%.

The remaining three budget revenue “pillars” all declined. Revenue from hydropower reached only 96.6% (VND 1,120 billion/VND 1,160 billion), revenue from Heineken Quang Nam Brewery Company Limited Branch reached only 17.5% (VND 100 billion/VND 570 billion) and land use fees only reached 31.5% (VND 850 billion/VND 2,700 billion).

The revenue shortfall from beer, hydropower and land use fees was over VND2,360 billion, but domestic budget revenue exceeded the estimate. What did the tax authority rely on to get the announced tax surplus?

Mr. Nguyen Van Tiep - Director of the Tax Department said that the increased tax revenue from large revenues of Truong Hai and Nam Hoi An (exceeding VND2,600 billion), plus many small revenues from other domestic revenues (personal income tax, environmental protection tax, debt collection and new revenue from fees for using infrastructure works, service works, public utilities in the border gate area...) has compensated for the shortage of beer, hydropower and land use fees, to get the increased revenue figure for the Quang Nam budget.

Stamp of the tax authority

The announcement of the budget revenue surplus in Quang Nam is considered a spectacular comeback of local domestic budget revenue. The Provincial People's Council "fixed" the domestic budget revenue in 2024 at only VND 20,100 billion compared to VND 20,880 billion in 2023, considered "a budget step backward".

Truong Hai's strong growth has contributed over 60% of Quang Nam's domestic budget revenue.

Analysis of the development of domestic budget revenue in 2024 shows that the revenue agency has faced many disadvantages and does not know where to rely on to compensate for the budget deficit.

Mr. Nguyen Van Tiep - Director of the Tax Department said there is no shortage of water, but the factories cannot supply electricity to the national grid. The grid-connected output of the factories has decreased, electricity is sold according to the bidding mechanism in the competitive electricity market... The revenue from land is only the debt collection from the previous year, no new projects have arisen and the beer factory has stopped operating...

“By July 2024, there has still been no policy to reduce registration fees by 50%. The budget revenue is really worried because it does not know where to find a source to compensate. However, the good news is that there is no shortage of other revenue sources, showing that the economy has grown again. Not all businesses are in trouble. There are still many businesses in the market that are strong enough to survive, can maintain and expand production and business. The budget revenue picture has not changed in a negative direction!” - Mr. Tiep said.

In addition to the capacity of enterprises or positive impact policies (tax extension, exemption and reduction of registration fees...) as medicine, mental therapy, and giving enterprises the opportunity to recover, the efforts of the tax sector are also worth recognizing.

Mr. Nguyen Duc - Head of the Economic - Budget Committee of the Provincial People's Council acknowledged that Quang Nam's domestic budget revenue, which was assessed to have the lowest collection rate in the country in June 2024, has grown rapidly in the remaining half of the year.

This result comes from the fact that the tax sector has proactively exploited and sought other sources of revenue to compensate for the shortage of main sources of revenue. Excluding land revenue and lottery revenue, domestic budget revenue in 2024 increased by more than 19.9% ​​- a successful figure that must be recognized.

According to Mr. Nguyen Van Tiep - Director of the Tax Department, the tax sector has fully exploited revenue sources. From assigning specific tasks to each tax officer and civil servant in urging the collection of extended tax payments, debt collection... Analyzing and reviewing revenue sources with room for improvement.

Closely monitor the health of businesses, in detail for each industry, field, and locality, promptly implement the Central Government's exemption and reduction mechanisms and policies to adjust appropriate tax management solutions, promptly help businesses overcome difficulties, and restore state budget revenue.

Since the beginning of the year, the tax authority has consulted the Provincial People's Committee to hold many meetings to direct, develop plans to monitor, supervise, and remove obstacles for each specific project to urge collection into the state budget, recommend the Government and the National Assembly to issue policies to reduce registration fees, extend special consumption tax, help businesses have enough financial resources or increase production and consumption of products in the market.

Source: https://baoquangnam.vn/loi-nguoc-dong-ngoan-muc-quang-nam-vuot-thu-ngan-sach-nam-2024-3145215.html