Revenue exceeds estimates, contributes to the state budget

In his report at the conference, Director of the Ho Chi Minh City Department of Taxation Nguyen Nam Binh said that in the first 6 months of 2024, the Department has drastically implemented tax collection solutions and fully implemented the instructions of the Government, the Ministry of Finance, the General Department of Taxation and the Ho Chi Minh City People’s Committee. Thanks to that, the results of state budget (SB) collection have been very positive:

• Total SB revenue reached 206,380 billion VND, equivalent to 58.7% of the plan, up 25.6% over the same period in 2023.
• Domestic revenue reached 188,480 billion VND, equivalent to 56.5% of the plan.
• Revenue from crude oil reached 17,900 billion VND, equivalent to 100% of the plan.

Bright spots in the revenue picture

A number of revenue items and taxes that account for a large proportion of total SB revenue have all achieved quite high collection rates, including:

• Corporate income tax (CIT): 61,607 billion VND, reaching 66.2% of the plan, up 21% over the same period.
• Value added tax (VAT): 44,074 billion VND, reaching 55% of the plan, up 29.3% over the same period.
• Personal income tax (PIT): 35,427 billion VND, reaching 61.1% of the plan, up 15% over the same period in 2023.

Supporting businesses, promoting VAT refund

Along with focusing on budget collection, the Ho Chi Minh City Department of Taxation also focuses on supporting businesses by promoting VAT refund settlement. In the first 6 months of the year, the Department has received 624 VAT refund applications, corresponding to a proposed refund amount of 13,259 billion VND. The Department has issued refund decisions for 508 applications, corresponding to a refunded amount of 4,692.3 billion VND, reaching 57.72% of the plan, up 65% in the number of applications and up 93.1% in the refund amount compared to the same period in 2023.

Effective tax debt collection

Thanks to the drastic implementation of measures to handle, urge and enforce tax debts, it is estimated that by the end of June 2024, the amount of tax debt collected will be 21,581 billion VND, including:

• Tax debt collected in 2023: 6,141 billion VND.
• Tax debt arising in 2024: 15,440 billion VND.

Strengthening tax management for households and individual businesses

In the first 6 months of the year, the Ho Chi Minh City Department of Taxation collected 3,691 billion VND from household businesses, up 7.9% over the same period, including:

• Revenue from households and individuals in the non-state economic sector: 1,908 billion VND, up 15.89% over the same period.
• Personal income tax: 1,783 billion VND, up 0.49% over the same period in 2023.

Assessment and direction for the last 6 months of the year

Deputy General Director Phi Van Tuan acknowledged the efforts of the Ho Chi Minh City Department of Taxation, at the same time assessed that the tax collection task in the last 6 months of the year will face many difficulties.

The Deputy General Director has set out key tasks for the last 6 months of the year:

• Continue to closely follow the directives of the Government, the Ministry of Finance, the General Department of Taxation, and the People’s Committee of Ho Chi Minh City.
• Assess the impact of support policies to propose appropriate budget collection solutions.
• Effectively implement the Government’s support policy packages.
• Continue to carry out good propaganda and support for taxpayers.
• Synchronously and effectively deploy tax management, anti-loss, tax debt recovery, and tax refund settlement solutions.
• Focus resources on tax inspection and examination.
• Tightly manage tax refund work.
• Expand the deployment of electronic invoices created from cash registers.
• Step up training and retraining of civil servants.
• Strengthen management, discipline, and order.