Increasing budget revenue associated with growth

Business activities of enterprises at Song Center Hue

Some revenue sources exceeded estimates.

In the context of the economy still facing many difficulties and being affected by political instability, world economy, inflation risks, new tax policies; the consumer market has many fluctuations, the decrease in purchasing power has greatly affected a number of key economic sectors. That makes many enterprises face difficulties in production, business, and supply of goods and products to the market.

Data from the City Tax Department partly shows the current difficulties when some revenues in the first 6 months of the year were low and decreased compared to the same period last year. The decreased revenues were concentrated in the group of state-owned enterprises, foreign-invested enterprises and some taxes affected by economic support policies.

Typically, revenue from the central state-owned enterprise sector only reached 44.8% of the estimate, equal to 86% compared to the same period. This revenue was low and decreased compared to the same period mainly due to a number of key enterprises having a decrease in tax payments such as: Thua Thien Hue Electricity Company decreased by 38%, Thua Thien Hue Telecommunications decreased by 36%... In addition, the group of foreign-invested enterprises also only collected 47.4% of the assigned estimate, equal to 92% compared to the same period. This revenue was low and decreased compared to the same period mainly due to Carlsberg Vietnam Brewery Co., Ltd., which is an enterprise with a large proportion of tax payments in the budget, with accumulated payments up to June decreasing by 19% compared to the same period. A number of key enterprises in this area also had a sharp decrease in tax payments compared to the same period including: Laguna Co., Ltd. (Vietnam) decreased by 27%, Luks Cement Co., Ltd. (Vietnam) decreased by 46%, Hue Food One Member Co., Ltd. decreased by 16%...

In addition, the environmental protection tax only reached 28.1% of the estimate, equal to 105% compared to the same period. According to the explanation of the City Tax, this revenue reached a low estimate because in 2025, the policy of reducing environmental protection tax by 50% will continue to be implemented.

Despite such difficulties, in the first 6 months of the year, the City Tax Department still collected 6,750 billion VND, reaching 59.8% of the estimate assigned by the Ministry of Finance, reaching 59.7% of the estimate assigned by the City People's Council and increasing by 24.8% over the same period last year. Of which, revenue from taxes, fees and other budget revenues excluding land use fees was 4,674 billion VND, reaching 52.6% of the estimate assigned by the Ministry of Finance; reaching 50.1% of the estimate assigned by the Provincial People's Council and increasing by 3.7% over the same period.

There are 6/17 revenue items that are higher than the assigned estimate such as land use fee; personal income tax; registration fee; local state-owned enterprise revenue; mineral exploitation rights revenue; commune revenue...

Integrating collection solutions

Mr. Doan Vi Tuyen, Head of the City Tax Department, admitted that the local budget revenue compared to other localities in the region is still quite modest, and the growth is not commensurate with the overall growth of the entire city. Some revenue items are not sustainable, significantly affecting the budget revenue situation.

To carry out the task of collecting the budget in the remaining 6 months, the City Tax Department focuses all resources, drastically and synchronously deploys solutions for revenue management, tax debt recovery, and anti-budget revenue loss, striving to increase the state budget revenue in 2025 by 20% compared to the estimate; closely monitor the budget revenue situation in the localities of the units to have a direction to analyze and clarify the low revenue, specifically for each locality, each region, each tax. At the same time, identify potential revenue sources, areas, and types of taxes with revenue loss to promptly propose effective management solutions.

The city tax will proactively report and coordinate with the city People's Committee to direct local branches and levels to coordinate with tax authorities to strengthen revenue management, promote measures to prevent budget losses to strive to exceed the assigned budget revenue. Resolutely implement revenue management solutions according to the new organizational model, assign revenue management tasks by subject to each tax base, each management officer in accordance with the conditions and actual collection capacity in each locality and revenue management field so that revenue management units can effectively implement the task of collecting the state budget in 2025.

According to Mr. Doan Vi Tuyen, the City Tax Department will closely monitor the progress of budget collection, focusing on improving the quality of analysis and forecasting of the situation and impacts on budget collection in the area. Strengthen the work of preventing revenue loss from revenue sources, continue to promote the implementation of revenue loss prevention projects; review and exploit revenue increase for potential revenue sources, fields, and types of taxes with revenue loss from e-commerce business activities, private housing construction, temporary construction, land, resources, fees, charges, other budget revenues... At the same time, review and strictly manage revenue sources to build the state budget revenue estimate for 2026 and expected revenue from 2026 - 2028 on the basis of closely following the local socio-economic development plan.