Prime Minister Nguyen Tan Dung has approved a 10-year tax reformstrategy for 2011-20 in order to meet the needs of the market economywhile enhancing revenues sources, increasing production capacity, andsharpening the competitiveness of domestic enterprises.
Government Decision No 732/QD-TTg issued on May 20 stated that the taxreform strategy for the next 10 years would ensure transparency and aimat encouraging exports and investment, especially high-technologyinvestment in remote and rural areas.
The comprehensive strategyencompass reforms to the value-added tax (VAT), personal and corporateincome taxes, special consumption taxes, import-export taxes,environmental taxes, and fees and duties on mineral and land use rightsand agricultural lands.
Under the plan, tax revenues would beincreased by 70 percent by 2015 and 80 percent by 2020. By 2015, theState budget would be equal to about 23-24 percent of gross domesticproduct (GDP).
By 2015, tax administration would also bemodernised to global standards, with simpler administrative proceduresthat ensure over half of all enterprises use electronic filing.
Underthe strategy, VAT on goods and services would gradually be reformeduntil a single tax rate could be applied by 2020. A road map to reducethe special consumption tax on tobacco, beer, liquor and automobileswould ensure regulation of the domestic market as well as therequirements of global integration.
Export taxes would berestructured to encourage high value-added exports while restrainingexports of raw materials and minerals. Import taxes would be reduced,with the number of tax levels limited and trade barriers removed to meetintegration requirements.
Ministry of Industry and Tradespokesman Pham Van Chat said that Vietnam would cut over 3,000 tax linesthis year, including 2,800 tax lines for agricultural products and 330for information technology products.
Vietnamese products might beadversely affected if local producers do not prepare well, Chat said,since imported products were likely to flood the domestic market to takeadvantages of the preferential tariffs. Domestic producers needed toimprove their product quality while building a strong local distributionnetwork, he said.
Corporate income taxes would be reformed underroad map to help companies enhance their capital and production andsharpen their competitive edge. Tax policies would aim at encouragingbusinesses to invest in high value-added production, support industries,bio-technology, and high-quality services. The tax reform strategywould also aim to make Vietnamone of the four Southeast Asian nationswith the most favourable conditions for doing business in terms oftaxation.
Under the Prime Minister's strategy, a new Law on Feeswould also be drafted to replace the current ordinance, and training oftax officials would be a key part of the strategy. The Ministry ofFinance would be responsible for overseeing implementation of thestrategy./.
Government Decision No 732/QD-TTg issued on May 20 stated that the taxreform strategy for the next 10 years would ensure transparency and aimat encouraging exports and investment, especially high-technologyinvestment in remote and rural areas.
The comprehensive strategyencompass reforms to the value-added tax (VAT), personal and corporateincome taxes, special consumption taxes, import-export taxes,environmental taxes, and fees and duties on mineral and land use rightsand agricultural lands.
Under the plan, tax revenues would beincreased by 70 percent by 2015 and 80 percent by 2020. By 2015, theState budget would be equal to about 23-24 percent of gross domesticproduct (GDP).
By 2015, tax administration would also bemodernised to global standards, with simpler administrative proceduresthat ensure over half of all enterprises use electronic filing.
Underthe strategy, VAT on goods and services would gradually be reformeduntil a single tax rate could be applied by 2020. A road map to reducethe special consumption tax on tobacco, beer, liquor and automobileswould ensure regulation of the domestic market as well as therequirements of global integration.
Export taxes would berestructured to encourage high value-added exports while restrainingexports of raw materials and minerals. Import taxes would be reduced,with the number of tax levels limited and trade barriers removed to meetintegration requirements.
Ministry of Industry and Tradespokesman Pham Van Chat said that Vietnam would cut over 3,000 tax linesthis year, including 2,800 tax lines for agricultural products and 330for information technology products.
Vietnamese products might beadversely affected if local producers do not prepare well, Chat said,since imported products were likely to flood the domestic market to takeadvantages of the preferential tariffs. Domestic producers needed toimprove their product quality while building a strong local distributionnetwork, he said.
Corporate income taxes would be reformed underroad map to help companies enhance their capital and production andsharpen their competitive edge. Tax policies would aim at encouragingbusinesses to invest in high value-added production, support industries,bio-technology, and high-quality services. The tax reform strategywould also aim to make Vietnamone of the four Southeast Asian nationswith the most favourable conditions for doing business in terms oftaxation.
Under the Prime Minister's strategy, a new Law on Feeswould also be drafted to replace the current ordinance, and training oftax officials would be a key part of the strategy. The Ministry ofFinance would be responsible for overseeing implementation of thestrategy./.
