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HA NOI (VNS)— Tax arrears in the first half of the year surged 32 per cent against the end of last year to VND64.63 trillion (US$3 billion), according to the General Department of Taxation.

The department said that the number was high compared with previous years, stressing the economic hardship and restricted inspections were behind the situation.

Some cities and provinces with high tax arrears were Central Highlands Dak Nong (up 152 per cent), southern An Giang (up 132 per cent), Binh Duong (up 116 per cent) and Ba Ria-Vung Tau (up 83 per cent).

Many cities and provinces failed to meet the tax collection plans, of which 22 posted a very low ratio of below 45 per cent.

Due to the economic hardship, many automobile manufacturers asked the Government for tax payment extensions totalling trillions of dong in the first half of the year.

Truong Hai, for example, asked for VND1.2 trillion ($55.81 million) of tax arrear extensions, saying that it owed banks of roughly VND6.5 trillion and had products worth roughly VND3.3 trillion ($153.48 million) unsold.

The department also attributed the low tax collection to the rising number of tax frauds. Tax agencies in H1 met only 25 per cent of the inspection plans set for this year.

During the period, tax agencies conducted examinations and inspections in 18,198 companies, up 6.1 per cent year-on-year and the tax collection increase via examinations and inspections reached nearly VND3.18 trillion ($147.9 million).

To deal with the tax frauds, the department said that it would set up steering committees in several cities and provinces to enhance the supervision and inspection to fight the frauds. — VNS