Stepping up Tax Administration Reform

2:41:37 PM | 12/30/2014

To collect enough tax set for 2014 amid weak local and national economies, the tax sector of Bac Ninh province has adopted drastic measures and tasks right from the beginning of the year, and administrative reform is considered one breakthrough stage. Vietnam Business Forum has an interview with Mr Ngo Xuan Tong, Deputy Director of Bac Ninh Department of Taxation, on the sector’s orientations. Duy Binh reports.
Could you please tell us the remarkable results the tax sector of Bac Ninh province has achieved? What do you think about those achievements?
In recent years, despite facing numerous enormous difficulties and challenges arising from the economic downturn, the entire tax sector of Bac Ninh province has endeavoured to outstandingly fulfil political tasks, collect more tax than the target assigned by the Ministry of Finance and the Bac Ninh Provincial People's Council, contribute significantly to the growth of the Vietnamese tax sector, and enhance financial resources for Bac Ninh province to boost socioeconomic development investment.
 
- In 2011, the tax revenue was VND4,300.5 billion, 20 percent higher than the target and 10 percent higher than the previous year.
- In 2012, the tax revenue was VND4,921.8 billion, 6 percent higher than the target and 14 percent higher than the previous year.
- In 2013, the tax revenue was VND6,521 billion, 11 percent higher than the target and 33 percent higher than the previous year.
- In 2014, the tax revenue was VND7,800 billion, 16 percent higher than the target and 20 percent higher than the previous year.
 
The tax sector always receives the support and guidance from the Ministry of Finance and the General Department of Taxation; firm but effective administration of the Provincial Party Committee, the Provincial People's Council, and the Provincial People's Committee; the close coordination of local governments, the consensus and favour of all economic sectors and the people, and the efforts of all tax officers in the province.
 
How has the tax sector of Bac Ninh province prepared in the past years, from personnel development to professional service?
In the past years, the tax sector of Bac Ninh province always successfully completes its key tasks thanks to its personnel. Each staff member must be clearly aware of his/her tasks and responsible to his/her agency. The staff are regularly trained with professional knowledge, sent to thematic workshops and tested on professional knowledge to have new training schemes. Both professional staff and managerial staff have their expertise fostered.
 
- The sector will effectively work out training plans and forecast personnel structure in new situations.
 
- The sector will praise the staff with good work and study achievements, encourage them in self-study, and assign them to positions best suited to their competencies.
 
Public administration reform is a central task of Bac Ninh province. How has the tax service of Bac Ninh province taken measures to improve the efficiency of administrative reform?
The Bac Ninh Tax Department is stepping up reform and renovation in accordance with the guidance of the Ministry of Finance, the General Department of Taxation and the Provincial People's Committee with the following objectives: Building a modern, effective and efficient tax service; consistent, transparent, simple and eligible tax, fee and charge management works based on three basic foundations: Institutional transparency of tax policy, simplified and scientific administrative procedures suitable with international practice, and human resources of quality and integrity; and modern, connective and automatic information technology application.
 
The sector has implemented the Government’s Resolution 19/NQ-CP dated March 18, 2014 on key tasks and solutions to improving the business environment and enhancing national competitiveness and the Prime Minister’s Directive 24/CT-TTg dated August 5, 2014 on strengthening management and reforming tax and customs administrative procedures, the Ministry of Finance’s Circular 119/2014/TT-BTC dated August 25, 2014 on guidance to amendments and supplements to contents and forms stated in seven circulars on value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT), tax administration, sale invoices to cut some tax administrative procedures to save time and expenses for taxpayers in tax declaration. The tax sector strives to reach the level of ASEAN-6 in term of tax service time for a company - 171 hours a year in 2015 (the tax sector will endeavour to shorten the service time to 121.5 hours). Besides, the Tax Department has applied modern technologies to synchronise tax management and ease the receipt and settlement of administrative records; organised annual conferences and dialogues with taxpayers to listen to their problems and seek best solutions; and provided free service for taxpayers.
 
In addition, the Bac Ninh Tax Department is actively applying online tax declaration, expecting to serve 95 percent of local companies on this new channel by December 31, 2014. The department plans to adopt electronic tax payment via State-owned commercial banks soon (expected to serve 300- 500 companies).
 
The sector will build criteria for measuring the satisfaction of taxpayers in the service of tax authorities in order to capture their aspirations and requirements to seek measures to improve service quality.
 
It will maintain and improve tax administration quality in accordance with ISO9001-2008 standards.
 
The department will further train ethical virtues, the sense responsibility for tax officials; seriously follow Directive 03/CT-BTC of the Ministry of Finance and Directive 01/CT-TCT of the General Department of Taxation on strengthening discipline, regulating working style, attitude and behaviours of tax officers to taxpayers so as to ensure effective administrative reform and facilitate businesses and citizens to perform their obligations.