An annual dialogue on tax and customs policies was recently held in Hanoi by the Ministry of Finance in cooperation with the Vietnam Chamber of Commerce and Industry (VCCI), attracting more than 400 businesses and consultant companies.
In his opening speech, Deputy Finance Minister Do Hoang Anh Tuan said that this conference took place while business performances of enterprises are in grave difficulty. The Ministry of Finance expected to share and discuss to find way-outs for policy difficulties. Although the economy expanded 5.8 percent in the first nine months of 2014, companies still underperformed. The country witnessed 57,000 corporate bankruptcies while new business start-ups were not that many. Only 29 percent of companies made a profit. The customs sector saw little change in importers and exporters from previous years.
Most companies appreciated the reform of customs and tax procedures as this helped them reduce troubles for them. However, some still complained about cumbersomeness in administrative procedures in these sectors. Stronger and deeper reform to administrative procedures and legal frameworks is necessary to meet economic and integration requirements.
Information technology application to customs clearance procedures reduced the time for enterprises in dealing with these. From April 1 to September 15, 2014, the Vietnam Automated Cargo and Port Consolidated System and the Vietnam Customs Information System (VNACCS /VCIS) was deployed at all 34 local customs departments with 170 branch units. It handled 2.56 million declaration forms with a combined registered import-export turnover of US$103.3 billion. As many as 42,700 companies registered to use this system. The system has brought many advantages for businesses, reduced the time required for clearance and trim costs for import and export activities.
Tax administration procedures have also been streamlined markedly as directed by the Prime Minister. Accordingly, the tax sector must make an effort to shorten payment time to reach the average duration in ASEAN countries in 2015. A lot of measures in support of businesses have been introduced like Circular 151 on detailed instructions for the enforcement of Decree No. 91/2014/ND-CP of the Government dated October 1, 2014 on amendments and supplements to a number of articles in tax decrees. According to tax authorities, if this decree is strictly applied, the time for tax declaration will be reduced by 88 hours.
According to VCCI Vice President Doan Duy Khuong, both businesses and the financial sector are in grave difficulty for the time being. Hence, the tax sector has to ensure enough tax collections for the State Budget while ensuring favourable conditions for enterprises. The financial sector has actively proposing effective measures to the Government to deal with difficulties.
Attending companies actively sent their opinions on administrative procedure reform to the Ministry of Finance. They said although the ministry has taken drastic actions to abolish unnecessary procedures to facilitate businesses, there are still existing problems in post-clearance audit, the application of commodity code in export - import list, directive documents for customs and tax policies, tax declaration and payment procedures, social insurance reform.
Deputy Finance Minister Do Hoang Anh Tuan appreciated their remarks and affirmed that their questions about tax and customs will be reviewed and answered clearly so as to help them deal with difficulties and obstacles in the most efficient manner. He emphasised that tax and customs administrative procedure reform is the central task of the Ministry of Finance in the past as well as in the future.
Le Hien
Vietnamese
