VCN - Deputy Prime Minister Vuong Dinh Hue answered the question from the National Assembly member Do Duc Hong Ha, Hanoi National Assembly delegation on the situation, causes and solutions of combating against the state budget loss and revenue loss.
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In response to the question from National Assembly member Do Duc Hong Ha, Deputy Prime Minister Vuong Dinh Hue said that in 2018, the state budget and financial task was carried out in the positive context of domestic and world economy. The Government has submitted to the National Assembly the report on total budget revenue in 2018 which exceeded the estimate by 3%, and the mobilization rate into the state budget which reached 24.5% of GDP, of which 20.7% of GDP came from taxes and fees. This was a positive result in the context of the economic growth rate being estimated at over 6.7% (the target was 6.7%), and further tariff reductions according to the integration commitments. However, from different viewpoints, there were still certain challenges for the state budget collection, such as the situations of transfer pricing, tax evasion and tax debts are still complicated. As of December 31, 2017, it was VND 73.1 trillion and to September 30, 2018, it was approximately VND 83 trillion (up VND 9.8 trillion compared to December 31, 2017).
However, if calculating rate of tax debt to total domestic revenue, this rate reduced (as of December 31, 2016, it was 8.7%; as of December 31, 2017, it was 7.6% and as of September 30, 2018, it was 7.5%). If excluding tax debts of taxpayers who have died, missing or lost their civil act capacity, etc., (including both original debts and late payment debts), currently accounting for 35% of the total tax debts, the tax debt rate was about 4.4% of the total domestic revenue, which is an acceptable threshold according to international practice (less than 5%).
For direction, the Government has submitted to the National Assembly a request to the local authorities to strive to increase revenue and minimize the number of localities that have lost revenue; if a locality expects to lose revenue, it must take the initiative in arranging and reducing the spending tasks and using local resources to ensure the spending tasks and not to reduce the estimates.
At the same time, strengthening inspection and examination, especially in key areas of collection, online business activities, restaurants, hotels, informal economic sectors, foreign direct investment enterprises (FDI); sufficiently collecting state budget revenues; urgently submitting to the competent authorities the amendment of the Tax Administration Law to further facilitate taxpayers, along with covering new revenues, enhancing efficiency, effectiveness of revenue management and assessment of actual tax debts.
Developing institutions and strengthening inspection and audit
Deputy Prime Minister Vuong Dinh Hue also shared that in terms of institutional development, the Government has submitted to the National Assembly for promulgation of Laws on: State budget, State Audit, Inspection and Thrift practice and waste combat, in which there were regulations on raising responsibilities of sectors, levels and units in management and use of state budget in an effective and economical manner. In particular, the State Budget Law 2015 has new provisions on the scope of revenues and expenditures, overspending; conditions for spending and prohibited acts; publicity and transparency from allocation to implementation; inspection and audit and etc., to both facilitate the implementation and raise the responsibility in budget management and use.
Regarding the implementation: The National Assembly, the Government and the Prime Minister have thoroughly directed and requested the enhancement of disciplines in anti-revenue loss, reduction of tax debts; strict budget spending according to estimates, regime, standards and norms; strengthening of inspection, examination and audit work and enhancement of the responsibility of the leader in improving the efficiency of the use and management of allocated budget and public assets.
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Regarding inspection, examination and audit: Drastically and strictly implementing the Party's guidelines and law provisions on the prevention and fight against corruption, thrift practice and waste combat in all socio-economical aspects, especially in the management and use of state budget, finance and public assets. Over the past time, the implementation of the recommendations of inspection, audit and the handling of responsibilities of the head have been accelerated; cases of corruption have been processed, thereby recovering lost and corrupted assets and money to the State budget.
By Nguyen Hoa/ Huyen Trang