No budget revenue leakage

The above content was shared by Minister of Finance Ho Duc Phoc when talking about fiscal policy management this year.

Many international organizations currently forecast Vietnam's economic growth this year at 5-6%. These forecasts are lower than the target set by the National Assembly (6.5%), affecting budget revenue.

According to the National Assembly Resolution, the estimated state budget revenue this year is 1.7 million billion VND. This number increases by about 5%, or 80,100 billion VND compared to the implementation in 2023.

Minister Ho Duc Phoc said that the financial sector has come up with solutions to prevent tax evasion and avoidance, which would result in budget losses. The solutions mentioned by Mr. Phoc include electronic invoices, AI (artificial intelligence) to analyze tax data, and tax collection from cross-border and domestic e-commerce platforms.

Updated figures from the Ministry of Finance show that as of April 21, tax authorities have received and processed approximately 7.48 billion electronic invoices. Currently, all gas stations nationwide have implemented electronic invoices for each sale and over 53,400 businesses have registered to use electronic invoices.

In addition, the financial sector also tightens the declaration of correct transfer prices to avoid tax losses in the real estate sector.

In the first four months of the year, budget revenue is estimated at VND 733,400 billion, equal to 43.1% of the estimate, up 10.1% over the same period in 2023. Of which, 25 localities' domestic revenue reached over 40% of the estimate, 54 localities had growth over the same period.

Revenue from foreign suppliers since the beginning of the year is about 3,900 billion VND.

According to Minister Ho Duc Phoc, budget revenue is directly proportional to business health and economic growth. Therefore, the Government has proposed many tax and fee solutions, improved the business investment environment, simplified procedures, provided capital and interest rate support, and increased public investment to restore production and business.

The amount of exemptions and reductions in taxes, fees, rents and land use fees since Covid-19 has reached about VND700,000 billion. This year, the Government continues to submit to the National Assembly for permission to extend the 2% VAT reduction period for some groups of goods and services currently subject to a 10% tax rate until the end of this year.

At the same time, the Ministry of Finance proposed that the Government allow an extension of the deadline for paying VAT, corporate and personal income tax, land rent, and special consumption tax for domestically manufactured and assembled cars. The estimated amount of tax and land rent support is nearly VND84,000 billion.