Some 335 trillion VND (15.7 billion USD) has been collected from taxes in the first half of 2014, up 14.5 percent year on year and equal to 53.7 percent of the annual tax collection plan.

According to the Nhan Dan (People) online newspaper, enhanced administrative reforms are considered key for the tax sector to implement its task of State budget collection in a sustainable manner.

Tax agencies at all levels have resolved to take drastic measures to manage and tightly control revenue, reduce losses, enhance recovery of arrears, and seek ways to increase revenue. The sector has also addressed difficulties and obstacles promptly to support businesses in developing production and trade and expanding markets.

In addition, measures to manage the revenue and prevent loses were implemented effectively over the period. Nearly 21,000 businesses have been examined and checked in terms of taxation, a 64.3 percent year-on-year increase, adding over 4 trillion VND (188 million USD) to the total revenue (an 80.8 percent year-on-year rise) and reducing losses by nearly 6.5 trillion VND (305 million USD), a 250 percent year-on-year improvement.

Regarding the inspection of transfer pricing activities, the tax agencies inspected 557 businesses that declared losses and showed signs of transfer pricing, and collected nearly 600 billion VND (28 million USD) in arrears, penalties and reimbursement, recovering 25.6 billion VND (more than 1 million USD) of tax deductions and 1.5 trillion VND (70 million USD) of losses.

Thanks to the effective implementation of measures to manage debt, domestic debt collection reached 17.5 trillion VND (822.5 million USD), resolving nearly 30 percent of last year’s tax arrears.

According to General Director of Taxation Bui Van Nam, under the close direction of the Government and the Ministry of Finance, tax management has been strengthened while further favourable conditions have been created for taxpayers.

Regular review of administrative procedures has helped replace or amend out-of-date procedures and to promptly issue new ones that not only facilitate tax collection, but also help businesses cut costs and save time in paying taxes, Nam said.

Notably, tax management over transfer pricing in 4,098 businesses has helped improve businesses’ compliance with tax regulations while tax payment through 20 banks had brought in 90 trillion VND (4.2 billion USD) as of June 30.

In addition, nearly 400,000 businesses across the country have conducted online tax declarations and a bill anti-counterfeiting system has been piloted in Hanoi and Ho Chi Minh City.

Nam affirmed the sector’s resolve for boosting administrative reforms to support businesses effectively and fulfill the set target in tax collection for the last six months of the year.-VNA