Rearranging the tax system, overcoming regional model shortcomings
The Ministry of Finance has just submitted to the Government a project to reorganize the tax authority system in the direction of unified management according to provincial administrative boundaries. Accordingly, 20 regional tax branches will now be rearranged into 34 tax units under provinces and cities, corresponding to 34 localities that have been approved by the National Assembly to adjust administrative units.
Along with the establishment of provincial-level tax departments, 350 district-level tax teams will be converted into 350 grassroots tax units under provincial and municipal tax authorities to manage taxes in some commune-level administrative units.
Statistics from the Ministry of Finance show that after implementing the regional model, about 4,500 tax officials have resigned, of which a high proportion are concentrated in mountainous and disadvantaged localities such as Cao Bang, Bac Kan, Yen Bai, Lao Cai, Dien Bien, Son La, Lai Chau... The main reason is that officials have to travel far, in some places it takes 2-4 hours per day to get to work.
The transition to the model of 34 provincial-level units is expected to overcome this situation, while ensuring compliance with the two-level local government model and enhancing coordination between tax authorities and local governments.
No procedures arise, taxpayers feel secure to accompany
In many localities, people and business households said that they have been informed about the plan to reorganize tax authorities and confirmed that there have been no inconveniences in the process of tax declaration and payment.
Ms. Nguyen Thi Hoang Ha, an electronics business household in Nhu Xuan district, Thanh Hoa province, shared: "Currently, I have not seen any changes in the tax payment or declaration process. But I am also a bit worried that if I change the management agency, I will have to re-issue the documents and procedures".
According to Mr. Mai Son - Deputy Director of the Tax Department, reorganizing tax authorities according to the model of 34 provincial-level units to replace regional branches is an important step to ensure consistency in reforming and modernizing the tax system.
Mr. Mai Son also affirmed that the organization did not require any administrative procedures. Basically, the tax obligations of people and businesses have not changed. The tax authority will automatically update the new location identification, notify taxpayers without requiring them to carry out any additional procedures, he affirmed.
Taxpayers in newly established or converted areas also do not need to re-issue the documents. The management system will automatically adjust, tax officers will continue to monitor and support as before, ensuring no interruption in tax obligations. The reform programs being implemented such as standardizing personal tax codes, electronic identification, implementing electronic invoices... continue to be implemented normally, not affected by the reorganization process.
Improving tax management efficiency
The vertical system model helps to clearly establish the tax authority of Vietnamese tax authorities in cross-border transactions, effectively implement tax agreements, and at the same time improve the capacity to cover budget revenue and expenditure between the central and local governments. A unified vertical industry system will ensure centralized direction, avoid dispersation in the organization, and at the same time improve the effectiveness of implementing tax reform programs, from policy mechanisms to the application of information technology, said Mr. Son.
Mr. Mai Son also emphasized that the organization of the tax system in Vietnam cannot be separated from local reality. The tax sector is always closely linked to the grassroots government because the characteristics of tax management and collection depend on the socio-economic situation of each locality.
The subjects of tax management in Vietnam are very wide, from individuals, business households, small enterprises to corporations, general companies and many specific economic regions. Therefore, converting the model to a provincial-level unit will create more favorable conditions for coordination, direction and organization of budget collection tasks in each locality.
