Tax from crude oil has surpassed its annual target by 18 per cent, amounting to VND101 trillion (US$4.7 billion), as revealed at a conference last Friday. — Photo vietnamnet

HA NOI (Biz Hub) — Tax from crude oil has surpassed its annual target by 18 per cent, amounting to VND101 trillion (US$4.7 billion), as revealed at a conference last Friday.

The General Department of Taxation disclosed that the total tax collection is estimated at VND681 trillion ($32 billion), which is equivalent to 109.1 per cent of the projection. Domestic tax accounts for VND580.1 trillion ($27.3 billion), or 107.1 per cent of the estimated figure.

Tax agencies conducted inspections on more than 67,800 enterprises, collecting VND12.2 trillion ($573 million) to be added to the state's budget in 2014.

The tax sector collected 50 per cent of the tax debt from December 31, 2013. The total tax debt by December 31, 2014, is VND70.2 trillion ($3.3 billion), which indicates an increase of 14.9 per cent compared with last year.

The General Department of Taxation shared that eight provinces increased their tax debt compared with last year (over 30 per cent).

Moreover, eight provinces incurred tax debt from 20 to 30 per cent. Meanwhile, 23 provinces decreased their tax debt compared with last year. Only seven provinces managed to achieve this decline in 2013.

Addressing the conference to review the sector's operations in 2014, Deputy Prime Minister Vu Van Ninh spoke highly of the achievements the sector had attained despite the many difficulties still being faced by the country.

However, he asked that tax inspection be conducted on at least 20 per cent of the 490,000 operating businesses.

In response to the Deputy PM's request, Finance Minister Dinh Tien Dung proposed the rates of 16 per cent, 18 per cent and 20 per cent within three years.

The sector also intensified the reform of administrative procedures and the application of modern technology throughout the year. Nearly 95 per cent of the businesses performed e-tax declarations.

Meanwhile, the time spent on tax procedures fell from 537 hours to 167 hours per year. The sector is striving to reduce it by an additional 45.5 hours. — VNS