Directive No. 04/CT-BTC On Strengthening Revenue Collection and Implementing Thrift in State Budget Expenditure in the Last Months of 2013

DIRECTIVE

On Strengthening Revenue Collection and Implementing Expenditure Saving Measures for the State Budget in the Last Months of 2013

trong các tháng cuối năm 2013

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As of October 2013, state budget revenue collection faced many difficulties. The total state budget revenue for ten months was estimated at VND 618.290 billion, equivalent to only 75.8% of the budget estimate, increasing by 8.6% compared to the same period in 2012. Specifically, domestic revenue was estimated at VND 406.050 billion, equivalent to 74.4% of the budget estimate, increasing by 11.2% compared to the same period in 2012; revenue from import and export activities was estimated at VND 115.160 billion, equivalent to 69.2% of the budget estimate, increasing by 12.5% compared to the same period in 2012. This is the lowest revenue result in recent years.

To fulfill the state budget revenue collection tasks assigned by the National Assembly, Government, and Prime Minister, the Minister of Finance requests the heads of units under the Ministry of Finance, Directors of Tax Departments, Customs Departments, Provincial Financial Departments, and all staff members in the financial sector to focus on directing and implementing the following tasks effectively:

1. Strengthening state budget revenue collection efforts to strive for completing the state budget revenue collection task for 2013

1.1. Continue reviewing and accelerating the progress of implementing tasks and solutions according to Decision No. 128/QD-BTC dated January 17, 2013 of the Minister of Finance regarding the issuance of the Action Plan of the Ministry of Finance to implement Resolution No. 01/NQ-CP dated January 7, 2013 and Resolution No. 02/NQ-CP dated January 7, 2013 of the Government. Implement well policies of tax deferral, suspension, exemption, and reduction to create conditions for businesses to have additional resources to maintain production and business operations, thereby generating revenue for the state budget. Vigorously promote administrative reform in tax management according to the Government's Project 30; implement customs and tax administrative reforms, accelerate the implementation of the National Single Window Mechanism and ASEAN Single Window to facilitate export and import activities, reduce time and costs for businesses in complying with tax and customs laws.

1.2. Strengthen revenue collection management. Based on monitoring and analyzing revenue results, leaders of tax and customs agencies at all levels must propose effective management measures, promptly identify additional revenue sources and areas with revenue losses to take appropriate management measures. On this basis, specific revenue targets for remaining months should be detailed, and revenue targets should be assigned to each unit and individual on a weekly and monthly basis. Regularly organize monitoring, supervision, and inspection of progress to ensure timely direction and urging of revenue collection to meet the revenue collection tasks assigned. Heads of units in the tax and customs sectors are responsible before the Minister for completing the 2013 revenue targets assigned.

1.3. Enhance revenue management, revenue exploitation, and prevent revenue loss and tax arrears through price consultation, valuation determination, tax code identification, post-clearance audit. Build and perfect risk management systems to ensure effective risk management information for each business process; update data to promptly detect and correct cases not in compliance with regulations, resolve issues arising in price management at units in a timely manner, and pay special attention to goods with high tax rates and large export values to prevent fraudulent practices through pricing and tax code application.

1.4. Conduct a comprehensive review of all revenue sources and funds of organizations and enterprises, inspect the situation of fund allocation, establishment, and utilization by enterprises and organizations collecting fees, promptly identify additional revenue sources to urge their prompt payment into the state budget; continue strengthening guidance for localities with significant personal income tax revenues to concentrate on urging payment into the state budget, especially individuals earning income from two or more sources, to settle personal income tax according to regulations.

1.5. Focus on auditing and inspecting enterprises with high tax risks, enterprises that have been refunded taxes with high risks, enterprises using illegal invoices, price transfer audits, and e-commerce inspections to increase revenue and prevent revenue loss. For Tax Departments in the Central Highlands and Southwestern regions, adjust the 2013 tax audit and inspection plans to ensure that at least 60% of enterprises in the plan are those suspected of illegal invoice trading and high tax risks. Specifically, Tax Departments in the Central Highlands region should focus resources on auditing and inspecting coffee trading enterprises. Tax Departments in the Southwestern region should inspect 100% of enterprises with high tax risks according to the directive of the Ministry of Finance in Document No. 8318/BTC-TCT dated June 27, 2013. Customs Departments in border provinces should strictly control export documents (especially small-scale exports) of enterprises in accordance with the law and guidelines of the Ministry of Finance.

Audit and inspection work must closely coordinate with debt collection efforts to urge timely and full payment of additional tax, fines, and overdue taxes into the state budget and other revenues based on conclusions and recommendations of the State Audit Office, Government Inspectorate, and other law enforcement agencies.

1.6. Strengthen customs inspection and control, combat smuggling and trade fraud, particularly from now until the end of the year, especially during the period before, during, and after the Lunar New Year. Actively implement operational measures to prevent, detect, arrest, and promptly handle smuggling cases, especially major and prominent cases involving networks and groups, focusing on combating and detecting illegal cross-border trade, drugs, weapons, explosives, environmentally harmful goods, subversive materials... to ensure national security and safety.

1.7The Tax Department and Customs Department must regularly coordinate in uniformly classifying high-risk enterprises for tax purposes. Accordingly, they shall closely monitor and inspect customs declarations and tax filings of enterprises with high tax risks to prevent tax fraud and embezzlement of tax refunds from the state budget; Strengthen coordination with the State Bank to unify risk criteria, documents, and bank transaction types that pose risks. Develop mechanisms for exchanging information with banks to promptly identify suspicious transactions and prevent embezzlement of VAT refunds through deductions and refunds; Urgently implement cross-checking of invoices, initially focusing on major areas (Hanoi, Ho Chi Minh City) to detect and promptly prevent violations by taxpayers.

1.8. Strictly manage the registration, issuance, and revocation of taxpayer identification numbers/business registration codes in accordance with Circular No. 80/2012/TT-BTC guiding the Law on Tax Administration regarding tax registration and business registration regulations. Coordinate with business registration authorities and relevant agencies to review and verify enterprises that have abandoned their business addresses to take timely measures; Review, guide, and inspect taxpayers' filing and payment of turnover taxes; Enhance cooperation among local tax authorities in filing and paying turnover taxes; Regularly review, inspect, and report on the management of taxes for foreign contractors operating in Vietnam through import-export activities.

1.9. Rectify refund procedures; Strictly follow regulations and procedures in determining eligible tax deductions and refunds according to guidance documents issued by the Ministry of Finance, particularly Circular No. 13706/BTC-TCT dated October 15, 2013; The Director of the Tax Department shall issue decisions on VAT refunds for taxpayers' refund applications managed directly by the Tax Branches in accordance with Circular No. 9976/BTC-TCT dated July 31, 2013; Offset the maximum amount of refundable tax against outstanding tax debts, including those managed by customs authorities; Strengthen internal audits within the tax sector concerning refund procedures (where higher-level tax authorities audit 15% and the audited entities self-audit 15% of refund files); Review cases with large refunds, sudden increases, continuous occurrences, and high-risk indicators to focus on refund inspections, combining refund inspections with comprehensive reviews of taxpayers' production and business activities.

1.10. Vigorously enforce tax collection; Develop plans to collect overdue taxes as of December 31, 2012, detailing monthly targets; Tax and Customs authorities at all levels shall review and determine the outstanding tax amounts for each entity and allocate collection targets to individual Departments, Tax Branches, and Customs Branches. Departments/Tax Branches and Customs Branches shall allocate specific targets to Teams and individual officers responsible for urging tax collection, ensuring that the total tax debt does not exceed the set target by December 31, 2013.

1.11. Issue 100% tax arrears notices and late payment penalties to taxpayers who owe taxes; for taxpayers subject to quarterly VAT declarations, issue notices quarterly; For taxes that have exceeded the extension period under current regulations, tax authorities shall issue notices and urge taxpayers to pay immediately in the month following the extension period into the state budget. Coordinate with the State Treasury, commercial banks, and financial institutions to enforce collection measures against enterprises violating tax laws, such as freezing accounts; deduct funds from accounts of enforced entities at treasuries, banks, and financial institutions to pay into the state budget. If full tax payments are not collected, halt customs procedures for exported and imported goods; Compel enterprises to cease issuing sales invoices and declare them invalid; Seize assets, auction seized assets; collect money and other assets held by others on behalf of the enforcement subjects.

1.12. Provincial Tax Departments shall cooperate with Finance Departments to determine fee and charge revenues and coordinate in urging the collection of land use fees and land lease payments. Coordinate with Information and Communications Departments, Radio Stations, and mass media to publicly disclose information about large tax-delinquent enterprises in accordance with the Law on Tax Administration; Coordinate with Investment Planning Departments in recovering Business Registration Certificates, Enterprise Registration Certificates, Establishment Licenses, and Professional Practice Licenses of enterprises seriously violating tax laws; recovery must be conducted in accordance with legal provisions.

1.13. The General Tax Department and General Customs Department shall proactively and closely coordinate with law enforcement agencies (police, prosecution, etc.) to promptly and strictly handle violations of tax and customs laws such as fraud, tax evasion, transfer pricing, smuggling, etc., in accordance with legal provisions, including handling tax and customs officials who violate the law (if any).

2. Continue to strictly, effectively, and economically manage state budget expenditures in accordance with Prime Minister's Directive No. 09/CT-TTg.

2.1. Based on the remaining state budget expenditure tasks for the last months of 2013 (excluding the additional 10% savings from the regular expenditure budget according to Directive No. 09/CT-TTg) and the requirements of the tasks, ministries and central agencies continue to review investment projects and regular expenditures allocated in the budget, proactively cut or delay implementation for non-urgent tasks. Strengthen thrift practices even further; minimize electricity, water, telephone, office supplies, fuel, festival, ceremonial, conference, seminar, domestic and foreign travel expenses; do not process supplementary payments outside the budget and advance funds except in truly necessary and urgent cases. By December 31, 2013, regular expenditure budgets allocated to budgetary units but not fully implemented will be canceled, except for those tasks that have been transferred according to established regulations.

2.2. Local financial agencies closely monitor the situation of revenue and expenditure in their localities, based on the ability to collect and utilize local financial resources to proactively manage local state budget expenditures, prioritizing sources to address urgent social welfare, defense, and security needs at the local level. In cases where all measures have been exhausted but still fail to ensure balanced local state budgets, report promptly to the Ministry of Finance for consolidation and submission to the Prime Minister for consideration and resolution.

All recovered investment capital, savings, and reductions in the 2013 regular expenditure budget belong to which level of budget shall be supplemented to that level's contingency fund and used according to the Prime Minister's regulations and the Ministry of Finance's guidance.

Financial agencies and State Treasury at all levels in localities strengthen inspection and control over state budget expenditures, ensuring compliance with regulations and thrift. Firmly refuse payment for expenditures subject to review, reduction, and delayed implementation if budgetary units and project sponsors do not provide reasonable and valid explanations.

3. The remaining time in 2013 is limited, while the volume of work and tasks to be carried out is still very large. The Minister requests heads of units under the Ministry from central to local levels, cadres, civil servants, public officials, and workers throughout the sector to uphold the tradition of the sector and unit, raise a sense of responsibility, follow discipline and rules, unite, seek leadership and direction from Party committees and local authorities, proactively coordinate with information media agencies to effectively promote publicity efforts, strive to overcome difficulties, and complete the highest possible political tasks for 2013.

Strictly implement Directive No. 03/CT-BTC dated August 16, 2013, of the Minister of Finance, launch a final sprint campaign throughout the sector to decisively strive to complete and exceed the annual state budget revenue target. Heads of budgetary units and project sponsors are responsible for reviewing and implementing thrift in expenditures within their units and projects; linking thrift in state budget expenditures and waste prevention with the campaign; promptly rewarding collectives and individuals contributing to the completion of state budget revenue targets and outstanding performance in assigned tasks; simultaneously strictly handling according to regulations cadres and civil servants lacking a sense of responsibility, failing to complete tasks, and engaging in illegal acts or violations of internal regulations of the Ministry or unit; closely coordinating with mass media agencies to effectively promote publicity about achievements in fulfilling political tasks of the sector and unit.