Proposal to reorganize the tax system according to provincial administrative boundaries
In the draft Decree amending and supplementing Decree No. 29/2025/ND-CP, the Ministry of Finance proposed reorganizing the tax system in a manner consistent with the model of two-level local government and the current situation of provincial-level administrative unit organization.
Specifically, the Ministry proposed to convert from the model of 20 current regional tax branches to 34 provincial and centrally-run city tax branches. At the same time, converting the current 350 district-level tax teams into 350 grassroots tax units under the provincial and municipal tax departments.
The adjustment of the organizational model is determined to ensure unified management requirements in the tax sector, while being consistent with the principle of organizing the administrative apparatus according to the provincial - district level.
The model of regional tax branches has many problems
According to the Ministry of Finance, the implementation of the regional tax branch model has caused many problems in personnel management and operation.
Regional tax branches are currently managing areas from 2 to 4 provinces, with a scale of thousands of civil servants, but do not have an intermediary organization level such as the functional department. This causes difficulties in assigning tasks, managing expertise and does not create conditions for civil servants to develop, plan, and appoint.
In addition, the organization of vertical units in the locality after the arrangement also faces difficulties in coordinating with local authorities, especially when the headquarters is not located in the center of the management area.
These limitations are the basis for the Ministry of Finance to submit a plan to adjust the entire tax system, in the direction of streamlining, close to the locality, in line with the current local government model.
Proposal to merge specialized departments, improve budget management efficiency
Along with reorganizing the tax system, the Ministry of Finance also proposed merging a number of specialized units in the central apparatus. Accordingly, the proposal to merge the State Budget Department and the National Economy General Department, due to the similar functions and tasks between the two cases.
Both of these units are currently performing tasks related to balancing, allocating, operating the state budget and mobilizing financial resources - budget for socio-economic development. The merger is expected to increase the effectiveness of strategic consulting, avoiding overlap and streamlining units.
This is one of many contents in the plan to reorganize units under the Ministry of Finance, which is being submitted to the Government for consideration, with the expected effective date from July 1, 2025.
