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Tax policies must support firms to boost revenue: official

14:45 | 14/07/2020

The General Department of Taxation must hasten reforms to create a favourable environment for enterprises to recover their business from the ravages of the COVID 19 pandemic which was critical to increase tax revenue Deputy Minister of Finance Tran Xuan Ha has said

tax policies must support firms to boost revenue official

Promoting online tax services would be a focus to improve convenience for tax-payers. (Source: internet)

Speaking at a recent taxation department conference in Hanoi, he said the pandemic was heavily affecting production and business and weighing on budget revenue.

Statistics showed tax revenue hit VND574.2 trillion (US$24.75 billion) in the first half of this year, equivalent to 45.8% of the plan for the full year, the lowest rate in recent years (51.1% in 2019, 49.6% in 2018 and 48.2% in 2017).

Only 34 out of 63 provinces and cities had recorded tax collection revenue equivalent to half of their goal for the full year or higher, with tax revenues mainly from land-use taxes and fees.

The other 29 provinces and cities had slow tax collection because their revenues were mainly from value-added tax, special consumption tax and natural resource tax.

Cao Anh Tuan, Director of the General Department of Taxation, said the tax watchdog would review the tax base to find sources which had potential to increase tax collection to make up for the drop caused by the pandemic.

Tuan added that tax management would be enhanced in sectors which benefited from the pandemic such as e-commerce, online business and telecommunications services.

Reaching the goal of collecting more than VND1.25 quadrillion in taxes for the State budget for the full year would be a tough task, he said.

He said that the General Department of Taxation would strive to collect taxes at the highest level possible, adding the watchdog would create favourable conditions for taxpayers through administrative reforms and online services as well as enhancing inspection to prevent tax evasion.

Ha told the conference that tax collection on the foreign direct investment (FDI) sector and non-State sector remained lower than planned and said there must be a focus on preventing transfer pricing.

He also urged the tax department to speed up the provision of online public services and the progress of applying e-invoices nationwide.

The tax department must also hasten reforms in the next 10-year period to create convenience for taxpayers and have policies to support businesses to overcome the difficulties caused by the pandemic.

“More than anyone, the tax department must provide support to enterprises in the post-pandemic recovery, which is critical to increasing budget revenue,” Ha said.

He said the project on expanding the tax base must be continued with a focus on related party transactions, e-commerce and digital-based businesses.

Source: VNA