Current Status of Tax Management in Binh Thuan.

adjustments of each tax and not fully anticipating the revenue sources that will arise in the development of the market economy. In the implementation process, there has not been a close look at reality, and measures have not been promptly discovered and proposed to collect new income sources into the State Budget such as income from land and house transfers and some other income sources of organizations and individuals...

The tax policy system has many tax rates, which creates complexity in the application of tax rates for taxpayers and tax collectors, thereby creating loopholes for evading and avoiding high tax rates on goods and services.

Some tax policies such as import tax and special consumption tax still heavily focus on protecting domestic production. New domestically produced goods are protected by high import tax rates. Economic sectors do not have a long-term development strategy, especially important economic sectors, so tax protection is still lacking in selectivity, and many goods are even overprotected, especially the domestic automobile manufacturing and assembly industry, although protected at a high level and for a long time, the automobile manufacturing industry has not yet formed as desired. Due to the above protection, enterprises have not proactively rearranged production and business, innovated technology, and improved management skills to increase their competitiveness.

The tax policy system has not really ensured equality and social justice in tax obligations. There is still discrimination in tax rates, preferential conditions, levels and duration of tax exemption and reduction between domestic enterprises and foreign-invested enterprises; between Vietnamese people and foreigners.

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The tax policy system still incorporates many social policies, and has many tax exemptions and reductions, which limits neutrality, does not ensure fairness among taxpayers, easily gives rise to negativity, and complicates tax management.

Tax collection management procedures are scattered in tax laws and tax ordinances, with overlapping and inconsistent content between taxes, causing difficulties and costs for both taxpayers and tax authorities, and easily leading to negativity in tax compliance.

There are no full and clear regulations on the legal responsibilities and rights of taxpayers of tax authorities and of organizations and individuals related to the tax.

tax work. Therefore, there is not enough legal basis for truly effective tax management.

+ On tax management:

First, on tax management mechanism:

- In general, the current tax management mechanism has not been built on the basis of promoting the initiative, obligations and responsibilities of organizations and individuals to self-calculate, self-declare, self-pay taxes to the State Budget, and self-responsibility before the law. This is shown in:

For a long time, the importance of education and propaganda, providing high-quality support services to improve the understanding and voluntary compliance with the law of taxpayers has not been paid attention to.

Perform functions that are the responsibility of taxpayers such as: calculating and determining tax rates to issue tax notices, determining tax exemption and reduction levels...

This results in:

Reduce the obligations and responsibilities of taxpayers.

Many tax violations are caused by ignorance, leading to the burden of strengthening tax administration to correct violations.

Waste of human and financial resources for tax authorities, tax authorities do not have enough human and financial resources to perform their main functions such as: increasing the supply of support activities, strengthening inspection and examination.

- The legal responsibilities and rights of taxpayers, tax authorities and organizations and individuals related to tax work are not fully regulated and inconsistent between taxes. Therefore, there is not enough legal basis for effective tax management.

- Some regulations are still cumbersome, complicated, unclear and not transparent, causing difficulties and costs for both taxpayers and tax authorities, easily leading to negativity in tax compliance.

- Not yet in line with advanced tax management standards in the region and the world.

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Second, on tax management technology:

- Tax management is not based on information collection, analysis and assessment according to management criteria to classify and select methods according to the level of risk appropriate to the characteristics and qualifications of each type of taxpayer.

- The procedures, regulations and professional measures for tax management are not really reasonable, and do not really pay attention to the effectiveness of tax law enforcement for both taxpayers and tax authorities.

- Many stages of tax management are still mainly manual; the application of information technology is still at a low level, especially in the stages of: collecting information related to taxpayers; propaganda to support taxpayers; tax debt management; inspection and handling of tax violations, leading to low quality of service provision and productivity and efficiency of tax management by tax authorities.

- The responsibility of relevant organizations and individuals in providing information and coordinating with tax authorities to collect taxes has not been emphasized.

- Propaganda work and support services for taxpayers have not received proper attention and investment, so taxpayers' compliance and voluntariness as well as society's understanding of tax policies and tax administrative procedures are still very low.

- The work of tax inspection and handling of tax violations by tax authorities has not been properly placed and is not suitable for the reality of our country, which is a low level of education and low awareness of legal responsibility; it has not been based on information collection and assessment, analysis, and classification of tax risk levels of taxpayers to inspect the right subjects; and it has not been well applied information technology programs in the inspection, checking, and handling of tax violations.

Third, on the organization of tax management apparatus:

- Tax authorities have not been assigned the function of investigating and prosecuting tax violations, and the function of debt enforcement has not been clearly defined, so identifying and promptly handling major tax frauds and settling outstanding debts is difficult.

- The functions and tasks of the departments in the tax authority have been improved step by step according to Decision No. 218/2003/QD-TTg of the Prime Minister, but

The current situation is still overlapping, not really specialized and professional enough to improve the effectiveness of tax management according to new requirements - modernization.

- The leadership apparatus of the General Department of Taxation; the department of propaganda and support for taxpayers; the department of information processing, inspection, handling of tax violations; debt management and tax enforcement are still too small compared to the requirements of tax management.

Fourth, about the tax staff:

- The majority of tax officials do not have the skills, expertise, or professionalism; the ability to apply information technology advances to tax management is not suitable for modern management requirements and tax administrative reform requirements; even a portion of tax management officials do not fully understand and properly implement current tax policies and tax management procedures and measures.

- The attitude and behavior of a number of tax officials are not truly dedicated, impartial, objective, civilized, polite, do not consider taxpayers as the most important customers to improve service quality, have not become companions of taxpayers in implementing tax laws, even show signs of lack of responsibility, collusion with taxpayers or cause trouble, harassment of taxpayers, not only causing loss of revenue to the state budget, but also causing waste and frustration for some taxpayers.

Fifth, regarding facilities and equipment: the industry's headquarters, equipment and working means are both lacking, outdated and inconsistent, more or less affecting the effectiveness of tax management.

Sixth, on the management environment:

- The socio-economic environment has not been reformed synchronously, creating favorable conditions for tax management such as business registration management, land management, import-export management, immigration management, cash payment management...

- Social awareness of taxes is still low, the majority of people do not clearly understand the good nature and benefits of tax work, do not strongly criticize and condemn tax fraud, and do not actively support tax authorities in tax collection. Tax evasion, tax fraud, and tax arrears are still quite common, causing loss of revenue for the State Budget and not ensuring social justice.

Based on the advantages and disadvantages of the current tax system of Vietnam, it can be seen that: Reforming and modernizing the tax system of Vietnam is an inevitable need, it is suitable for the requirements of international economic integration. The reform of the tax system must be carried out synchronously in two aspects: reforming policy institutions and reforming tax management methods, in which the starting point is to apply the "self-declaration and payment mechanism" for enterprises and implementing the tax management model according to functions at tax authorities.

II/ CURRENT STATUS OF TAX MANAGEMENT IN BINH THUAN .

1./ Overview of natural conditions .

1.1. Natural conditions :

Binh Thuan is a coastal province in the southern central region, one of the nine provinces in the Eastern region, located between two major cities, Ho Chi Minh City and Nha Trang City, with National Highway 1A and the Unified Railway running through it. Most of Binh Thuan's territory is low mountains and narrow coastal plains. Binh Thuan has little rain, a lot of sunshine, and a fairly high average temperature: 26 - 27 0 C.

+ Natural area: 7,7992 km2, of which territorial waters area: 52,000 ha.

+ Length of National Highway 1A: 178 km.

+ Coastal length: 192 km.

+ Length of railway: 180 km.

1.2. Population and labor :

Total population in 2004: 1,140,429 people, of which the number of people of working age is 518,310 people, of which the number of rural workers is 745,048, accounting for 65% of the total number of workers in the province.

The number of employees in the State sector is 38,375 people, accounting for 5.4%. The remaining number is in the non-state sector. The number of unemployed people each year accounts for a fairly large proportion of the total number of employees: about 98,000 people (nearly 19%).

Labor in agriculture and seafood in Binh Thuan is mainly manual labor, accounting for about 70% of the total labor force. The number of cadres and laborers with qualifications from

Technical workers and above account for only about 5% and are mainly concentrated in the State sector.

GDP )

1.3. Some local economic characteristics :

1.3.1. Some general indicators :

- GDP at current prices over the years is as follows: 2002: 3,973 billion VND.

2003: 4,678 billion VND.

2004: 6,146 billion VND.

(In which the annual GDP of the NQD sector accounts for 70 - 75% of the total)

- GDP per capita in 2004: 340 USD.

- Economic growth rate in order from 2002 to 2004: 8.8%;

6.6% ;10% .

Thus, the economic growth rate of Binh Thuan is not low compared to the whole country (7.5%). However, GDP per capita is too low compared to the whole country (about 400 USD) and compared to the provinces in the Eastern region (only above Binh Phuoc).

According to 2004 statistics, in the GDP structure of Binh Thuan, the proportion of agriculture, forestry and seafood accounts for a large proportion (33.82,4%). The locality is continuing to direct the economic restructuring towards increasing the proportion of industry - services and reducing the proportion of agriculture and seafood in the GDP structure.

- Food output in paddy equivalent: 380,000 tons.

- Seafood output: 130,000 - 151,000 tons.

- Annual timber output: 20,000 - 25,000 m 3 .

- Total retail sales of social goods: 5,004 billion VND.

Of which private and individual: 4,498 billion VND.

- Industrial production value: 2,900 billion VND.

In which: Private, individual: 2,473 billion VND

- State budget revenue in 2004: 919 billion VND. (excluding revenue from crude oil)

- Local budget expenditure in 2004: 1,480 billion VND.

- Central subsidy (additional expenditure): 474 billion VND.

- Export turnover: 75 million USD; of which agricultural and seafood products: 65 million USD.

- Import turnover: 35 million USD, of which raw materials and fuels are 34 million USD.

1.3.2. Some specific indicators of Binh Thuan resources :

- Marine resources : with a territorial sea area of 52,000 hectares and a coastline of 192 km, Binh Thuan is one of the provinces with the richest sea resources in seafood, with great potential for seafood exploitation and export, and tourism development. The total amount of fish surveyed is estimated at about 230 thousand tons. Every year, there are about 5,000 boats exploiting over 50% of the above output. Binh Thuan's coastline is quite beautiful with fine white sand and is located next to undulating mountain slopes and rocky shores, very favorable for investment in tourism development.

- Forest resources : Binh Thuan forest has an area of about 550,000 hectares with a timber reserve of over 25 million m3 , not to mention about 158,500 hectares of bare hills and mountains which are areas for planting protective forests, planting long-term industrial crops, planting raw material forests, developing livestock, etc.

In general, although marine and forest resources are quite abundant, indiscriminate exploitation in recent times has caused these two resources to rapidly decrease and become exhausted while there has not been significant investment in regeneration, restoration and development.

Marine and forest resources are the two largest resources of the locality. In addition, Binh Thuan also has some mineral resources such as white glass sand with a reserve of 496 million m3, which can meet the demand for high-grade glass and civil glass production. Mineral reserves are also quite large: 1.2 million tons. Natural mineral water resources are also a highlight of the locality, which can be exploited annually for about 20 million m3.

liters. Water resources and hydropower have been exploited quite well because Binh Thuan has a very large hydropower source and has been invested by the Central Government, so the current exploited output is capable of reaching over 4 billion kWh/year. In addition, on the continental shelf of Binh Thuan, there are currently 3 oil fields with quite large reserves being exploited, the Ministry of Finance is currently

Decentralize revenue sources for resource tax, sea and water surface rental fees, and subcontractor VAT to Binh Thuan for collection. This revenue source is expected to be about 1,000-2,000 billion VND annually.

With a natural area of nearly 800,000 hectares, Binh Thuan has over 10 different types of soil including: sandy soil (18.3%), alluvial soil (9.43%), gray soil (18.9%), the rest is red soil, yellow soil, hills, forests, ...

It is worth noting that the wasteland is still too large, the State does not have the conditions to invest or many places do not have specific plans and usage plans; the people in the province do not have the conditions or are not allowed to exploit this resource, while many areas of land, if properly planned and allowed to be exploited and used well by economic sectors inside and outside the province, can bring about very high economic efficiency through investment in tourism development, construction and development of infrastructure, production and business, leasing, development of new residential areas, etc.

2./ Overview of the organization and management work and tax collection results in the area atBinh Thuan in recent times.

2.1/ Budget collection results in the area:

(see appendix 1)

Through the table of data on the implementation of the annual budget, it can be seen that the Binh Thuan tax sector has organized the collection work to achieve the budget targets assigned by the province and the central government. The mobilization level to the state budget has increased every year.

Revenues mainly focus on tax revenues from the state and non-state economic sectors and other financial measures: such as lottery revenues, land use rights revenues and other revenues. However, total revenues from entities with tax code registration, tax registers, tax collection and finalization accounts for a large proportion of the total state budget revenue, approximately 75%, including: state-owned enterprises, non-state industrial and commercial taxes, agricultural land use taxes and real estate taxes. This is a stable annual revenue source, with little fluctuation and if well managed, it will stimulate production development, foster revenue sources and increase budget revenue. In 2005, the Central Government decentralized revenue from crude oil of 3 oil fields located in the sea area of Binh Thuan province, estimated annual revenue from this source is about 1,000 - 2,000 billion and

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