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Tuesday, June 25, 2024

Tax debt in HCMC surges

By N. Tan

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HCMC – Tax debts in HCMC have soared to VND43 trillion, piling pressure on the city’s tax department.

This staggering figure translates to tax debts constituting over 9.2% of the tax revenue target. This year, the city has been entrusted with collecting nearly VND469.4 trillion for the state budget.

According to the HCMC Tax Department, the city’s total tax debt increased by 16.6% compared to late 2022. Notably, out of the total tax debt, around VND12.7 trillion is specifically related to cases where the tax amount owed increased dramatically for certain taxpayers, with several firms owing taxes ranging from over VND1 trillion to nearly VND2.7 trillion.

Excluding the cases of sudden tax debt surges, the tax debt in HCMC had stood at nearly VND41.8 trillion by the end of May, or 8.9% of the tax revenue target.

With tax debts accounting for nearly 9.2% of the city’s allocated budget target, the municipality faces a considerable challenge in meeting the annual tax department’s goal of keeping the total tax debt at or below 5% of the total revenue for the year.

In the first half, tax authorities have issued 45,473 tax enforcement decisions, totaling VND185.4 trillion in owed taxes. Although this represents a 7% decrease compared to the same period, the amount of tax debt recovered has increased by a staggering 126%.

The HCMC Tax Department retrieved VND12.7 trillion in tax debt from January to June, down 6% compared to the same period last year. This recovery comprised nearly VND5.7 trillion from 2022 and VND7 trillion from new tax debts in 2023.

In efforts to address the issue, the HCMC tax authority has been proactively handling accumulated tax debts, utilizing the provisions outlined in Resolution No. 94/2019 of the National Assembly.

It has processed debt cancellations and tax penalty waivers, benefiting 119,975 taxpayers, totaling VND4.7 trillion.

In addition, the HCMC People’s Committee has issued 329 debt cancellation decisions, benefiting 17,232 taxpayers with a total overdue tax amount close to VND500 billion.

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