The State budget collection in Hoa Binh province has received constant attention and directions from the provincial Party Committee, People’s Council and People’s Committee, the Ministry of Finance and the General Department of Taxation, along with effective coordination from all-level administrations and sectors.

By the end of May 2024, the state budget revenue was estimated at 2.88 trillion VND (nearly 113.23 million USD), equivalent to 71% of this year’s target set by the Prime Minister, 50% of the target set by the provincial People’s Council, and 196% of the figure in the same period last year.


Hoa Binh has recorded relatively good budget collection from many sources such as the foreign invested sector, the industry, trade and non-state sectors, personal income tax, environmental protection tax, charges, fees, and land use fees.

The state budget collection so far this year has posted breakthroughs compared to the same period last year. However, it is a fact that revenue sources remain unsustainable and still depend much on land use fees and the Hoa Binh Hydropower Company. Meanwhile, tax arrears remain very high. Two-thirds of the 2020 - 2025 tenure has passed, but Hoa Binh failed to achieve the budget collection targets for some years. Therefore, it is hard to reach the revenue target of 10 trillion VND for 2025.

At many forums and meetings, the provincial Party Committee, People’s Council, and People’s Committee discussed causes of the poor performance in budget collection. One of the main causes is that the nurturing of revenue resources remains limited. Changes in the collection policy in recent years also form one of the causes. Others include the slow implementation of industrial park and cluster projects, ineffective investment attraction, some investors’ weak capacity, and businesses’ small and medium sizes, limited financial capacity, and slow recovery from impacts of the COVID-19 pandemic.

The state budget collection plays a highly important role in ensuring resources for local socio-economic development. Increasing the revenue aims to improve the quality of people’s life, build modern and comprehensive infrastructure, guarantee local budget efficiency, and gradually reduce the dependence on support from the government. Therefore, it is considered a task of leading importance.

To speed up the state budget collection to fulfill this year’s task and secure collection sustainability, the Hoa Binh steering board for promoting the state budget collection and contribution said firstly, it is necessary to complete zoning plans to serve as the basis for implementing projects. It is important to accelerate land auctions, land use fee collection, and the re-organisation of state agencies’ properties; implement comprehensive measures to strictly manage local revenue sources; and enhance inspection and examination to prevent tax losses and evasion so as to bring tax arrears to less than 8% of the total state budget collection.

Another measure is to step up communications and tax management over online business, e-commerce, telecommunication and internet services, and especially the use of e-invoices.

The province’s viewpoint is to diversify revenue sources to promote economic sectors’ contributions to the state budget and ensure collection sustainability.

As enterprises, cooperatives, and investment projects are the main and long-term source of budget collection, authorities also need to create favourable conditions for those taxpayers to operate profitably to nurture revenue sources.

 


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