Taxman concerned over revenue decline
Taxman concerned over revenue decline
The Government’s Decree 100---with heavy sanctions for inebriated drivers, which has led to a plunge of over 50% in the sales of alcoholic beverages---and the impact of the Wuhan coronavirus may reduce the country’s tax revenue by some VND30 trillion (US$1.3 billion), according to the national taxman.
In addition, the crude oil price typically falls to over US$50 per barrel, which will likely cut the tax revenue by more than VND3 trillion, news site Mot the gioi reported, citing Cao Anh Tuan, head of the General Department of Taxation.
The general department has assigned municipal and provincial departments of tax to inspect enterprises in their localities to gather statistics on the number of active and dissolved firms, adopt solutions to manage tax collection and enhance control over the refund of value-added tax for enterprises and invoices.
Moreover, at least 80% of tax arrears that were due at the end of last year are expected to be collected this year, and the total tax debt should fall below 5% of the country’s tax revenue this year.
According to the general department’s report on tax collection last month, tax agencies collected VND155.6 trillion, or 12.4% of the full-year target and 111.5% over the same month last year. The revenue included VND6.5 trillion from crude oil and VND149.1 trillion from domestic production and business activities.
Despite positive results in tax collection in January, the coronavirus spread and plunge in alcoholic beverage sales will significantly affect tax collection.
