Lê Duy Minh, Deputy Director of HCM City Department of Taxation, announced on Wednesday that the department will stamp seals at all gas station in the city in order to prevent tax loss and fraud. — Photo tuoitre.vn

HCM CITY – Lê Duy Minh, Deputy Director of HCM City Department of Taxation, announced on Wednesday that the department will stamp seals at all gas station in the city in order to prevent tax loss and fraud.

All stamped sealing processes will be conducted in under 60 seconds, and stations will be notified beforehand by the taxation department. The HCM City People’s Committee will provide gas stations with financial support.

Data management will be electronically controlled, including data collecting using a smartphone-based application and data transferral through a central system.

“We have to take this action, since it has been hard to control the origin of fuel at retail outlets. Unqualified fuel found at many gas retail outlets abets smuggled goods and results in inequality in business,” Minh said.

Gas station tax fraud occurs when fuel retailers falsify supplier invoices and tax refunds to decrease tax liabilities.

Nguyễn Thanh Phong, Deputy Director of Quality Management Department under HCM City Department of Science and Technology, said that the joint team will only stamp seals on mechanical and electrical meters. Digital meters, on the other hand, can be adjusted by remote controls.

“Gas stations with separated or broken meters have to fix them all before receiving stamping”, he said.

Gas retailers have voices worries about whom to notify and how long it takes for authorities to record data and open seals in case of damage. However, Minh said that the department predicted this situation and will provide contact when stamping. The data management will be implemented flexibly and finish its first phase by September 30.

The State Budget has lost revenue because of unqualified fuel in the market recently. According to Minh, HCMC is one of the biggest gas consuming markets, with about 3700 pumps. However, it is also one in a few of cities without a stamping plan.

Meanwhile, the scheme has been implemented in northern provinces of Việt Nam since 2016, bringing about positive results. For example, in Quảng Ninh--in which all stations were stamped by November 2016--the monthly average tax on fuel consumption and environmental protection have increased about 15 per cent. --VNS