Why did Hai Duong create a breakthrough in budget collection?

Ford Hai Duong is a large contributor to Hai Duong's budget.

Set a record

Hai Duong's total state budget revenue in 2024 reached VND30,774 billion for the first time, an increase of 38% compared to 2023. Of which, domestic revenue was VND26,154 billion, an increase of 36.1% compared to the previous year; revenue from import-export activities was VND4,371 billion, an increase of 46.1%.

Analyzing in depth the results of state budget collection in 2024 in Hai Duong province, we can see many "talking" numbers, with many records set for the first time.

All 16 revenue items are estimated to exceed the estimate. New milestones in budget collection are found in both domestic tax and import-export tax collection, in many taxes, in economic zones, in many localities and enterprises.

Regarding the local sector, Hai Duong City continues to maintain its leading position, with total revenue for the year estimated at 2,296 billion VND, exceeding 89% of the year's estimate and increasing 58% compared to 2023. District Gia Loc is estimated to reach over 1,951 billion VND, exceeding the estimate by more than 80%. Nam Sach collected over 1,770 billion VND, exceeding 45.7% and nearly 2.7 times higher than in 2023. Binh Giang district is estimated to collect nearly 1,365.6 billion VND, 2.48 times higher than the target assigned by the province. Cam Giang district also had budget revenue exceeding 1,000 billion VND for the first time...

All domestic revenues exceeded estimates, with many large revenues increasing sharply. Typically, land use fees were over VND 8,688 billion, exceeding 88% of estimates and increasing 98% compared to the previous year .

In 2024, Hai Duong's land use fee collection is estimated at VND 8,500 billion, exceeding 84% of the estimate and increasing over 93% compared to 2023. In the photo: Thanh Cong ecological urban area in Kinh Mon town

Overcoming difficulties and obstacles caused by the impact of the economy, domestic and foreign markets, natural disasters, etc., many enterprises have focused on effective production and business, making significant contributions to the state budget. Revenue from the business sector in 2024 is estimated at nearly VND 21,714 billion, accounting for 88.11% of total budget revenue and increasing by over 30% compared to 2023.

Of which, revenue from foreign investment enterprises (FDI) was nearly VND 7,948 billion, exceeding 35% of the estimate, up 10% over the previous year. Ford Vietnam Co., Ltd. is still leading the FDI enterprise sector in terms of budget contribution. Many enterprises that did not make any tax payments this year in 2023 also returned to the "race" of budget payment, such as Sumidenso Vietnam Co., Ltd., which paid 184.7 billion VND; LEO Vietnam Paper Products Co., Ltd., which paid 53.9 billion VND...

In addition, through inspection and examination, some cases were subject to high tax arrears such as Proterial Vietnam Co., Ltd. (64.6 billion VND), Posco Vietnam Processing Center Joint Stock Company (39 billion VND)...

Revenue from the non-state industrial, commercial and service sector was over VND3,821 billion, exceeding 42% and increasing by 29%. The main reason is that many enterprises paid taxes dramatically increased such as: LEO Vietnam Paper Products Co., Ltd., Hoang Thanh Co., Ltd., Hoang Yen HD Co., Ltd., Ecopark Hai Duong Investment Joint Stock Company, Thanh Cong Group Joint Stock Company...

Revenues from environmental protection tax, registration fees, revenue from central and local state-owned enterprises, land rent, fees for granting rights to exploit resources and minerals, dividends, and shared profits... all grew by double digits.

Personal income tax collection was over VND 1,489 billion, exceeding 46% and increasing by 34%. The reason is that income tax from production and business activities of individuals is higher than the same period; at the same time, the real estate market has signs of recovery, leading to an increase in income from capital transfer and real estate transfer compared to 2023.

Besides domestic revenue, import and export tax this year reached the target early since the end of the third quarter and ended the year with many new peaks.

According to the Head of Hai Duong Customs Branch Nguyen Van Thanh, 2024 is the first year that import and export taxes in the area exceeded the estimate by more than 52% and increased by 45% compared to the previous year. The Branch processed 473,509 import and export declarations, an increase of nearly 20%, with a total turnover of nearly 17.866 billion USD.

What is the cause?

Hai Duong attracts many businesses, contributing to increasing budget revenue. In photo: Construction of a factory in the expanded Dai An industrial park

The new peak in budget collection in 2024 is the result of the unprecedented drastic participation of units in charge of budget collection. With the motto of "taking people and businesses as the center of service", Hai Duong always accompanies and shares the difficulties of businesses, has been focusing on promoting administrative procedure reform, improving the investment and business environment, removing difficulties, obstacles and inadequacies in policies and administrative procedures to promote businesses to develop quickly and sustainably.

Hai Duong Provincial People's Committee has closely coordinated with the Ministry of Finance and the General Department of Taxation to direct the Provincial Tax Department to exempt, reduce, and extend tax and land rent payments for businesses. When businesses do well, the province's revenue is also "nourished" stably and the results exceed expectations.

Resolutely collecting outstanding debts is also a solution to increase budget revenue. In 2024, Hai Duong collected VND 10,647 billion in tax arrears. Hai Duong tax authorities issued 3,715 enforcement decisions by withdrawing money from accounts/freezing accounts; stopping the use of invoices; and issuing 517 notices of temporary suspension of exit for legal representatives of tax-debt enterprises.

There were weeks when the Provincial Tax Department arranged a schedule for direct dialogue with many real estate businesses that still owed land rent and land use fees to clarify the reasons for the delay and request a commitment to pay on time. In addition to reasonable solutions, for businesses that deliberately delayed, the Provincial Tax Department had strong solutions such as proposing to ban business owners from leaving the country, and coordinating with Hai Duong Newspaper to publish a list of businesses that owed large amounts of land rent and land use fees.

Hai Duong Provincial Tax Department staff guide on e-commerce tax declaration

“The socio-economic development situation has shown good growth, most sectors have achieved better results than the previous year, creating momentum for revenue in 2024 to achieve positive results. For example, when the real estate market warms up, real estate businesses contribute large one-time land use fees and land rents, and land registration fees increase... are the reasons for positive budget revenue results", said Do Cong Tien, Director of the Hai Duong Provincial Tax Department.

Mr. Nguyen Van Thanh, Head of the Customs Branch, said that the unit actively applies information technology in customs procedures, improving management efficiency with 100% of the process being automated to ensure quick customs clearance of goods.

2025 strives to break records

In 2025, Hai Duong is assigned to collect 27,580 billion VND, an increase of 40% compared to the 2024 estimate.

To complete the task of budget collection and set new records, the Provincial Tax Department will enhance its capacity to accurately and promptly forecast changes in the economic situation inside and outside the province to propose proactive and flexible revenue management solutions. Strengthen coordination and connection, exploit cross-checking of tax management information, prevent tax loss, prevent transfer pricing, and collect tax debts. Focus on managing capital transfer activities, real estate, mineral resource exploitation; strictly control value-added tax refunds. Deploy a digital map of business households and effective tax management solutions for individuals doing business on digital platforms, e-commerce businesses, etc.

People's Committees at all levels and relevant departments and branches continue to carry out tasks and solutions to improve the investment environment, enhance competitiveness, and remove difficulties for enterprises' production and business activities. Quickly implement projects related to land use fee auctions, bidding for projects using land, and focus on handling pending projects that have not yet calculated land use fees to increase budget revenue...

JACKIE CHAN

Source: https://baohaiduong.vn/vi-sao-hai-duong-tao-dot-pha-ve-thu-ngan-sach-401310.html