Vietnam tax revenue in 2020 exceeds year’s target despite Covid-19

Despite the severe Covid-19 crisis, Vietnam’s tax revenue in 2020 reached VND1,278 trillion (US$55.37 billion), 2% higher than the yearly estimate or an increase of VND24.34 trillion (US$1.05 billion).

Deputy Prime Minister Truong Hoa Binh at the conference. Photo: Le Son.

Director of the General Department of Taxation Cao Anh Tuan revealed the figure at the year-end conference of Vietnam’s tax authorities on January 5.

“The result showed the strong efforts from the government in pursuing the dual target of both containing the pandemic and boosting economic recovery,” stated Mr. Tuan.

So far, 55 out of 63 provinces/cities have realized or even exceeded their respective tax revenue targets this year, in which Hanoi remained a highlight with tax revenue of VND265.89 trillion (US$11.52 billion), up 5.9% year-on-year.

In 2021, the National Assembly set tax revenue target of VND1,116 trillion (US$48.36 billion),   which Mr. Tuan said is a challenging task given the complicated Covid-19 situation globally and the dim outlook for the world’s economy.

“Tax authorities would continue to provide support for the people and businesses affected by the Covid-19 pandemic in 2021,” stated Mr. Tuan, while striving to keep the ratio of tax arrears to total tax revenue below 5% by the end of 2021.

Priority to keep healthy tax organization

Deputy Prime Minister Truong Hoa Binh urged tax department to soon complete the tax reform strategy for the 2021-30 period, at the same time proposing fiscal support in terms of waiving and freezing tax payment for those severely hit by the pandemic.

“Tax payers should be at the center of any tax policies,” Mr. Binh stressed.

The Deputy PM urged tax authorities to ensure greater discipline  in operation to prevent possible corruption, requesting more efforts to keep a strong and healthy tax organization that put people and businesses at the heart of its services.

In order to realize this goal, Mr. Binh expected the tax departments to continue pushing for administrative reform and greater IT application in tax procedures.

To avoid tax losses, Binh said this is essential to improve the efficiency of private sector tax management, including the use of electronic tax payment for business households.