Bac Kan Tax Department: Great Efforts to Meet State Budget Targets

Source: Pano feed

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Bac Kan province is one of the provinces facing the most difficulties in collecting corporate tax because of limited number of firms, most of whom are small and micro enterprises, as well as agriculture and forestry based economy. To learn more about how Bac Kan Province Tax Department aims to reach the targets of the state budget in 2013, Vietnam Business Forum had an interview with Mr Hua Dinh Bich, Deputy Director of Bac Kan Province Tax Department. Thu Huyen reports.


In the first 9 months of 2013, the results of tax collection remained low, compared with estimates of the province.It will be a hard task to complete the targets of the proposed plan. Could you kindly share about the tax collection plans of the Bac Kan Province Tax Department?


In the first 9 months of the year, we only collected approximately 69 percent of the total proposed tax revenue, so the target revenue in the last 3 months will be hard to achieve. Therefore, we have proposed many comprehensive measures to accomplish the targets of the state budget revenues in 2013. Accordingly, the Department will start reviewing, managing and exploiting all the income sources to offset the deficit from the total tax collection plan. Besides, we will manage the tax declaration processes, timely handling the late payments of tax declaration or late tax payments in accordance with the law, strengthening the supervision and inspection of the tax collection, which focuses on the high-risk businesses, businesses with signs of the transfer pricing, and businesses with negative tax declaration for a long and repeated time. We continuously urge businesses to timely pay tax and discover tax arrears through inspection, accelerating the advocacy, counselling the tax legislation to the taxpayers, proactively coordinating with relevant agencies and the people’s committees at district and commune levels for the tax and fee management in the province and advising and proposing the Provincial People’s Committee to direct the relevant agencies to accelerate the payments of the basic construction investment. At the same time, there are other measures to overcome the difficulties in the phase of consumption, and generate revenues for the state budget.


How have you fostered the reform and simplification of administrative procedures, and the application of information technology in administration recently?


The reform of the administrative procedures and the application of information technology in administration are very important, and are our top concerns, to increase openness and transparency and create favourable conditions for enterprises in the process of implementation of tax procedures. Therefore, we have promulgated regulations to guide and solve problems, given advices on tax policies and procedures and addressed the taxpayers’ tax procedures based on the one-door system (issued decision 78, dated September 18, 2007 of the Minister of Finance). In addition, the tax authorities have created a panel of administrative procedures listed publicly and made widely available for easy public access.


Regarding the application of information technology, the Department has adopted 13 technology applications including tax debt collection management system, tax registration system, tracking system of tax payment records, two-way bar code declaration system, supporting system for tax inspection, corporate financial statement reporting system, centralized database and information extraction database of the taxpayers, personal income tax management system, tax management of non-agriculture land use, information exchange system of Tax – Treasury- Customs, and risk analysis information system of the taxpayers to support for the planning, inspection and application of the online tax declarations.


The implementation of the administrative procedures pursuant to Decision 78 and the application of IT in tax administration have helped the information updating process be more accurate, fast and efficient, gaining more practical benefits for businesses as well as more favours for the tax administration of the tax authorities. Thus, this will be supported by local businesses.


Local companies are mainly small-sized ones with limitations in financial capacity and are now still dealing with the economic downturn. What have you done to accompany and share difficulties with them to maintain tax revenues in a sustainable way?


The recent time has posed a lot of challenges to the businesses throughout the country in general and businesses in the Bac Kan province in particular. To tackle this difficulty, the Bac Kan Province Tax Department has fully complied with the solutions and policies of the Government to remove difficulties for enterprises and support the market. Accordingly, the province is implementing tax reduction and extension under Circular 16 of the Ministry of Finance as a guideline for the implementation of Resolution 02 dated 01/07/2013 of the Government on a number of solutions to solve the problems of businesses and support the market. Some activities include extension of the corporate income tax for the amount of tax payable in the I, II, and III quarters in 2013 for small and medium businesses with less than 20 billion revenue and less than 200 employees, and businesses operating in the fields of processing and agriculture and forestry.


To increase the state budget revenues from tax collection and other sources depends not only on the consensus and compliance of the different entities with the government’s policies but also the annual production efficiency of the economic and social sectors of each locality. Therefore, in order to foster a sustainable source of revenue, the department is trying to implement many solutions with focuses on the effective management of the current revenues as well as other revenue sources arisen in the area. We also proposed that the Provincial People’s Committee soon fulfil the socio-economic goals proposed under the Resolution by the provincial party meeting. The resolution focuses on facilitating a good business environment for local businesses to develop and gradually shift towards the higher industrial proportion. Along with the firm direction of the provincial leaders and the consensus of all of the people and the business community of Bac Kan province in general, as well as the determination of the officials of the Bac Kan Province Tax Department in particular, the department will successfully complete the goals and tasks set out in 2013 to have good layout for a successful implementation of the planned state budget revenues in 2014 of the Ministry of Finance and the Provincial People’s Committee.




Đăng ký: VietNam News