Hanoi, along with Ho Chi Minh City, is the two cities that collect the most taxes, each above VND300 trillion (US$12.7 billion) in 2022, according to the General Department of Taxation (GDT).

Taxpayers at a tax office in Hanoi. File photo

"The strong economic results have resulted in 63 out of 64 provinces/cities having completed or even exceeded their respective tax collection targets," GDT deputy director-general Vu Chi Hung said at a meeting on the nation's 2022 fiscal performance and 2023 targets on December 15.

According to Hung, there have been eight provinces/cities posting tax revenue of over VND30 trillion ($1.27 billion), including Ba Ria – Vung Tau, Hung Yen, Binh Duong, Dong Nai, Quang Ninh, Haiphong, Thanh Hoa, Vinh Phuc; four with over VND20 trillion ($847 million); and 18 with over VND10 trillion ($423.7 million).

This year, Vietnam’s total tax revenue was estimated at VND1,460 trillion ($61.86 billion), exceeding the estimate by 24.3% and up 8.5% year on year. Of which, domestic revenue made up the lion’s share of VND1,400 trillion ($59.3 billion), 21% higher than the year’s target and up 6.6% against last year.

Apart from focusing on tax collection, Hung said tax agencies have been working on support measures for people and businesses under the economic recovery program, including waiving and extending the due date for payment of taxes and land rental fees worth more than VND174 trillion (US$7.4 billion).

The GDT proposed the Government cut value-added tax at VND20 trillion ($848 million), environmental protection tax on jet fuels at VND1.9 trillion ($80.57 million), and petroleum products at VND26.3 trillion ($1.11 billion).

"Taxpayers have also benefited from the extension of the due date for tax payments worth VND96.3 trillion ($4 billion) in 2022," he added.

Hanoi tightens tax management in e-commerce platforms

Director of Hanoi’s Department of Taxation Mai Son attributed the city’s positive tax collection to effective measures preventing tax losses and arrears collection, especially in e-commerce transactions.

According to Son, the total amount of tax arrears and penalties in the city stood at VND3.05 trillion ($129.4 million), up 15% year on year.

“The local tax department has been finalizing the database on taxpayers, business performance, and the capital inflow to assess their tax compliance and risks management,” Son said.

Regarding e-commerce activities, Son said the tax authorities continue to maintain close relations with commercial banks, delivery firms, and intermediary payment service providers to prevent tax losses.

“In 2023, the agency is committed to modernizing the tax management process to create further convenience for customers and transparency in tax payment,” he added.