ASEAN KEY DESTINATIONS
Debt must be collected promptly: GDT
Tax authorities have been told to collect tax debts of enterprises totalling VND23.5 trillion (over US$1 billion), or an 18.8 per cent year-on-year increase, by the end of July , the General Department of Taxation (GDT) reported.
According to Phi Van Tuan, deputy general director of GDT, at the beginning of this year, the GDT had set a target of collecting tax debts of enterprises for the tax authorities and instructing them to carry out strong measures to retrieve debts.
Tax authorities are required to review all tax debts of enterprises and timely adjust “virtual” debts due to errors of accounting and invoices.
Finance Minister Dinh Tien Dung said after the National Assembly passed the State budget estimates, the Ministry of Finance identified that the State budget balance would certainly become more intense as the global oil price plummeted early this year. By doing so, the finance ministry had instructed tax authorities and customs at all levels to promptly collect tax debts of enterprises.
D?ng said that of the total of VND75.23 trillion in tax arrears until May 31, 2016, the overdue debts had already reached VND34.55 trillion for a period over 90 days. Tax authorities are required to make every effort to collect this amount. D?ng also said penalties for late payments incurred by enterprises climbed to VND25.1 trillion, accounting for 33.4 per cent.
Outstanding tax debts worth VND15.55 trillion are the most difficult to collect. This is attributed to problems of tax payers whose businesses were dissolved or went bankrupt, or the business owners and legal representatives were dead, missing or fled their residences. Tax agencies have to classify all kind of tax debts and then report to the National Assembly for a final decision.
With regard to the tax collection till July this year, the GDT had set a target of collecting 97 per cent of tax debts. Of this figure, 13 cities and provinces had to collect tax arrears of VND19.5 trillion.
According to statistics of the GDT, some 55 out of 63 cities and provinces have seen their tax debts rising.
Nguyen Dai Tri, deputy general director of GDT, said difficulties in collecting tax debts were that many businesses deliberately delayed their tax debts. As a result, tax authorities have to implement strong measures to force them to pay debts. Obviously, strong measures sometime had a bad influence on the image of enterprises and their business performance, Tri said.
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Indonesia to launch 13th economic package this month
Coordinating Economic Minister Darmin Nasution said on Wednesday that the government would release its 13th economic policy package in August, adding that the draft had been completed.
Darmin said the 13th package was largely an extension of the previous one, but would expand its focus beyond industry. The 12th package focused on small and medium enterprises.
"We are just waiting to schedule a meeting with the president," Darmin told reporters at his office. He refused to give the exact date the new policy package would come into effect.
The ministry team must meet with President Joko "Jokowi" Widodo one more time to finalize the details, Darmin said.