Restructure state budget revenues to take advantage of the industrial revolution 4.0

Industrial Revolution 4.0 contributes to increasing the competitiveness of enterprises, boosting economic growth and increasing state budget revenues. Picture: Nguyen Hien.

Reduced budget spending on many areas

In fact, the FIR is based on digital technology and integrates all smart technologies to optimize every process and production method. This will help to reduce costs of production, management and operation (by using integrated technology, connecting everything, etc…), improving productivity and improving labor productivity that increases the competitiveness of enterprises, promotes economic growth and increases state budget revenues. In addition, new arising economic activities that are related to digital technology will also be adjusted through a system of tax policies and revenue collection, thereby contributing to the state budget.

On state budget spending, FIR has contributed to reducing expenditures in some areas: The expense for environmental protection will be reduced thanks to the use of digital technology to reduce toxic waste, save costs, reduce waste and emissions to the environment. In addition, the administrative costs in the long term may decrease as the Government uses digital technology and smart technology to implement the management. However, FIR also puts pressure on increasing expenditure, especially spending on science and technology development, social security, security and national defense.

Brings some challenges in establishing a system of financial and state budgetary policies in line with the context and situation.

However, according to Dr. Nguyen Viet Loi – Director of National Institute for Finance, Ministry of Finance, FIR also brings some challenges in establishing a system of financial and state budgetary policies in line with the new context and situation for ensuring transparency and contributing to improving business environment and attract investment ... Accordingly, the system of tax policy and state budget revenues must be adjusted to ensure that both the import-export commitments are in line with the current trend and cover the new economic activities arising in the context that applies to digital technology, and integrates all the smart technologies. Moreover, the policy must ensure the effective mobilization of resources to carry out the restructuring of the economy, the development of priority industries and trades and the driving force for research and development, improving the business environment and enhancing national competitiveness.

Ensuring tax equality

Fully aware of the advantages and disadvantages in implementing the Directive No. 16/CT-TTg on enhancing capacity of access to FIR by the Prime Minister, the Ministry of Finance has issued a number of documents that orientates implementation of the application of technology of FIR in the field of finance – budget such as: Decision No. 556 / QD-BTC dated 24 March 2016 of the Minister of Finance approving the 5 year plan on applying information technology in the operation of the Ministry of Finance in the 2016-2020 period; Resolution No. 02-NQ / BCSĐ dated March 9, 1818 of the Party Committee of the Ministry of Finance on deployment of the application of the FIR in financial-budgetary field … At the same time, many policies and solutions have been paid attention by the Ministry of Finance to adapt and take advantage of FIR. Specifically, in the field of state budget, the tax branch continues to expand the online tax declaration system for businesses, expand the deployment of electronic tax payment services; Linking electronic tax information between tax authorities, customs, treasury and commercial banks. Customs offices carry out e-customs procedures and implement electronic payment gateways, nationwide VNACCS / VCIS system; Continuing to expand electronic tax refund, electronic services for individuals and organizations; piloting the connection between the customs office and the warehouse, port and yard business in Hai Phong to reduce customs clearance time and improve the efficiency of state management of customs. The tax reform efforts and customs administration have contributed to reducing paper, shortening time, reducing the cost of implementing administrative procedures in the taxation field for import and export that are appreciated by the domestic business community and overseas investors.

Addressing solutions, Dr. Nguyen Viet Loi said that in the coming time, the finance sector should continue to complete the system of policies in combination with the restructuring of state budget revenues, ensuring equality about tax among tax payers; ensuring compliance with international commitments; creating favorable production and business environment and promote investment, ensure national interests with correct tax collection, create favorable conditions for taxpayers to accumulate and encourage production and business development.

Besides, the Ministry of Finance shall study and issue management policies and revenue policies for e-commerce transaction activities and new services formed from FIR. At the same time, restructuring of state budget expenditure in line with the new context and situation of digital technology development, paying attention to the fields of human resource development, education and training, science and technology. ...; reviewing and making good use of capital mobilization channels, including sources of foreign direct and indirect debt, foreign currency remittances to diversify financial investment instruments so as to efficiently mobilize domestic and foreign resources to meet the requirements of socio-economic development and the process of industrialization and modernization of the country.