Minister Dinh Tien Dung: Property tax will contribute significantly to the anti-corruption

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There are many different opinions on the draft law on property tax, could you tell me why the Ministry of Finance are holding a consultation at this time?

Recently, there have been many different opinions on the draft Law on property tax. We are very grateful to listen to and fully appreciate the opinions of experts, scientists and people across the country.

This is an important step for us to understand and complete the report to the Government, and if the drafts is approved by the Government, then it shall be reported to the National Assembly for National Assembly’s legislative development program in this term.

The reason we developed this law is based on the guidelines of the Central Committee, the Politburo as well as the National Assembly and the Government. That is, from Resolution No. 19 / NQ-TW dated 31st October 2012 of the 11th Central Executive Committee on continuing to renovate policies and laws on land in the period of comprehensively accelerating the renovation and creating a foundation for our country to become a modern industrial country by 2020, for the Strategy for tax system reform for the period 2011-2020, as well as the Project on the exploitation of land resources which have been approved by the Prime Minister. The most recent is Resolution No. 07-NQ / TW by the Politburo on policies and measures to restructure the state budget and public debt management to ensure a sustainable national finance. Resolution No.25 / NQ-QH13 of the 13th National Assembly on the five-year financial plan 2016-2020 with the specific requirement of studying and finalizing the tax policies on properties in which the subject of property tax includes land and assets attached to land.

To implement, we have developed a draft Law to ask the people's opinions. The draft was launched with objectives as follows: first, strengthening the asset management; second, improve the efficiency of home and land use; third, improving the efficiency of the use of house and land and restrict the wasteful use of property and resources, land and public property; fourth, ensuring the transparency in the management and use of properties, thus contributing significantly to anti-corruption. Finally, expanding revenues to the state budget and ensuring the restructure of revenues.

Basing on these objectives, we have researched the draft and held public consultations for people as well as scientists, enterprises to perfect the draft.

There are many solutions for budget balance, including revenue expansion, but the public is concerned about why the Ministry of Finance does not promote the solution to save money instead of raising revenues, Minister?

I agree with this view. It is clear that we restructure our budget on the basis of the restructuring policies on state budget collection in the context of our integration and opening. Thus, we have to restructure the collection policy together with expanding revenues.

This is the most basic solution to ensure the restructuring of state budget revenues in the coming time. Along with that, we will have to carry out a series of cost saving measures to ensure that recurrent expenditures are reduced, so as to increase expenditures for development and investment and debt repayment in the coming time.

Recently, the National Assembly and the Government have also introduced detailed solutions to save money in order to meet the objective of reducing recurrent expenditures to increase expenditures for development and investment and debt repayment. Specifically: we have proposed solutions to reduce the cost of conference seminars, launching ceremonies, including the current solutions such as public car package.

In the coming time, these solutions will continue to be deployed but at the same time, they must implement well the spirit of the Central Resolution on organizational restructuring, staff streamlining, raising the efficiency of organization apparatus as well as promoting the renovation of public non-business units. if we can do that, we will reduce recurrent expenditures and create sources for salary reform. Then, restructuring the budget restructure.

How is the apparatus for streamlining and renovating of public non-business units implemented, Minister?

In my opinion, the streamlining apparatus and renovation of public non-business units require the participation of all sectors and levels. For the Ministry of Finance in particular, to implement the policy of the Central Government, we have restructured the apparatus and reviewed the functions and tasks.

From 1st July 2015, regarding the implementation of the new Law on Public Debt Management, the Ministry of Finance was assigned as a focal point to mobilize ODA loans and foreign preferential loans. Under reviewing tasks of units under the Ministry, we realized that there is no need to increase the organization, the apparatus, or the staffing arrangements to implement this task.

In addition, we held a meeting to discuss and approve the Scheme, firstly for the State Treasury system, dissolving and merging 43 transaction offices in provincial treasuries and by 43 focal points. For the tax system, approving the Scheme on restructuring of apparatus of tax branches of districts and towns in the direction of inter-branch.

Accordingly, in 2018, we will restructure 327 tax branches in districts into 154 regional tax branches, reducing by 173 branches. In 2019, continuing to restructure 53 branches into 25 branches, reducing by 28 branches. By 2020, continuing to restructure 168 tax branches in districts into 78 branches and continuing to reducing 90 branches.

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Of course, in the process of implementation, we will continue to review and may reduce the number of tax departments in the coming time, which will be greater than the number stated in the approved scheme.

Thank you very much!