Ministry of Finance ready to listen to suggestions of enterprises about tax and customs policy

Deputy Minister of Finance Vu Thi Mai made a speech at the conference. Photo: Thùy Linh

Actively implement support policy for enterprise

According to the Deputy Minister of Finance, the socio-economic situation in the country and the world has encountered many difficulties due to the Covid-19 pandemic.

To support businesses and people to cope with the impact of the Covid-19 pandemic, based on the resolutions of the National Assembly, the Government and the Prime Minister's instructions, the Ministry of Finance has developed and submitted to competent authorities approve and synchronously implementing of many solutions to support and remove difficulties for businesses and people.

Specifically, extending deadline of paying taxes and land rents for people facing difficulties due to the impact of the Covid-19 pandemic; reduction of payable corporate income tax in 2020 for enterprises, cooperatives, non-business units and other organisations; to continue exempting agricultural land use tax until the end of 2025; increasing the family deduction of personal income tax, thereby reducing the individual's tax liability; reduction of payable land rents of 2020 for those affected by the Covid-19 pandemic; the reduction of environmental protection tax on aviation fuel by the end of December 31, 2020; reducing the rate of registration fee for domestically manufactured and assembled cars by the end of December 31, 2020; cutting import tax of a number of commodity groups to remove difficulties for businesses and promote the development of agriculture, mechanics, supporting industries and automotive industry.

“Since then, the total amount of tax and revenue collection that have been extended, exempted or reduced in accordance with policies issued up to now was about VND 99.3 thousand billion, estimated to be about VND 110 thousand billion in 2020, of that the amount of tax, fees and land rent was extended about VND 80 thousand billion; the amount of exempted and reduced was about VND 30 thousand billion,” Deputy Minister Vu Thi Mai informed.

The Ministry of Finance has also coordinated with ministries, sectors and agencies to implement policies of direct support for workers and people facing difficulties due to the Covid-19 pandemic. Up to now, 12.79 million people affected by the pandemic have been supported to the tune of VND 12.69 thousand billion.

“Putting in the context that the source of State revenue was greatly affected, the State budget still had to ensure the need to spend on regular activities, ensure capital for development investment and especially the increase of the need for spending on social security and spending on pandemic prevention had created a great challenge to the balance of the State budget and the implementation of the above support solutions has made clear the determination which was always accompanied and supported businesses”, he said.

According to the leader of the Ministry of Finance, despite facing many difficulties in 2020, the results of State revenue for the whole period still basically met the targets as set. The average size of State revenue for the five-year period from 2016 to 2020 is about 24.5% of GDP. Revenue collected from taxes and fees is about 20.4% of GDP. The source of revenue from taxes and fees has been increasingly sustainable and guaranteed for investment and development, maintaining the apparatus, ensuring social security and national security.

“The above positive results in recent years have been contributed significantly from the business community, demonstrating the efforts and determination to respond and implement solutions on directions and manage social economic development of the Party, National Assembly and Government. The Ministry of Finance would like to offer thanks for the contributions and efforts of the business community about the positive results in socio-economic development as well as the results of the implementation of the State revenue collection in particular,” Chief Vu Thi Mai said at the conference.

Ready to listen to enterprises’ opinions

At the conference, Deputy Minister Vu Thi Mai said that by implementing the Government's resolutions on the main tasks and solutions to continue improving the business environment, enhancing national competitiveness, over the years and in 2016-2020, especially in 2020, the Government always focuses on the reform of administrative procedures, including tax and customs procedures to create an favorable business environment for enterprises, facilitating the fulfillment of tax obligations with the State budget. The Ministry of Finance has been implementing many aspects of work, focusing on improving the institution, reforming administrative procedures, modernising and facilitating enterprises.

In the tax sector, with the goal of administrative reform and building e-Government, the Ministry of Finance has promoted the implementation of modern tax management applications, facilitating taxpayers and already provided 194 online public services at level 3 and 4 on the website of the General Department of Taxation and 63 tax departments. A total 150 administrative procedures have been integrated through the National Public Service Portal. The electronic tax declaration system accounted for about 99.32% of active enterprises with more than 11.28 million dossiers and cooperated with 55 commercial banks to deploy electronic tax payment services with about 780.6 thousand enterprises (reaching 97.63%).

In addition, in customs, the Ministry of Finance has worked with ministries and sectors to complete the implementation of 202 administrative procedures of 13 ministries and sectors on the National Single Window, connecting with 3.2 million dossiers of more than 40 thousand enterprises; provided nearly 90% of online public services at level 3 and 4; has connected with nine ASEAN countries to exchange electronic C/O form D; implementing e-customs with the participation of more than 99.65% of enterprises in all customs units in the whole country, thereby shortening the time for enterprises to do customs procedures and enhance the implementation of the electronic tax payment scheme with the electronic revenue collection reaching the rate of more than 98.6% of the total revenue collection of the customs authority.

“It can be seen that the tax and customs policies and administrative procedures were required to be continually improved, updated in a timely manner to suit the actual requirements while the operation of business activities of enterprises were very active and diverse. Therefore, in the process of applying the provisions of the policies and administrative procedures into practice, arising difficulties and problems in the implementation were obvious," Deputy Minister Vu Thi Mai said.

“To promote the efficiency of the policies in practice, on the part of the State management authority on tax and customs, the Ministry of Finance hopes to receive positive feedback from the business community. Through today's meeting, as well as in the coming time, the Ministry of Finance hopes to continue to receive many straight and constructive contributions from the business community on tax and customs policies and procedures of Vietnam to continue reforming and improving towards more transparency and specificity, to help taxpayers fully, quickly and conveniently implement tax policies, contribute to encouraging investment and encouraging export and be consistent with international practices, international commitments in the process of regional and world economic integration of Vietnam,” Deputy Minister of Finance Vu Thi Mai said.