The Ministry of Finance proposed a sum of more than 27.7 trillion VND (1.2 billion USD) of tax arrears classified uncollectable to be erased. (Photo phatluatxahoi.vn)Hanoi (VNS/VNA) - Experts said erasinguncollectible tax arrears was necessary but transparency must be ensuredthroughout the process to prevent losses to the State budget.
In a draft National Assembly resolution about handlinguncollectible tax debts which was recently published for comments, the Ministryof Finance proposed a sum of more than 27.7 trillion VND (1.2 billion USD) oftax arrears to be erased.
The finance ministry said that erasing uncollectible taxdebts would help ease the burden on tax management agencies and reduce costsfor the Government. The deletion of tax debts also helped provide a moreaccurate figures for developing State budget revenue and spending plans andother macro-economic indicators.
According to Deputy General Director of the GeneralDepartment of Taxation Phi Van Tuan, tax debts classified uncollectible weresums owned by taxpayers who were dead, lost or incapable of civil acts. Theuncollectible debts also included enterprises that had been dissolved ordeclared bankrupt but did not implement dissolution or bankruptcy procedures asregulated.
Nguyen Duc Hai, Chairman of the National Assembly’s Finance-BudgetCommittee, said that there was a lack of detailed regulations about how tohandle tax arrears, especially uncollectible sums.
For many years, uncollectible tax debts caused a lot ofdifficulty for management, Nguyen Thi Van Chi, a member of the committee said,adding that it was necessary to erase uncollectible sums, so tax managementagencies could focus on other tasks rather than spending time chasing thedebts.
However, transparency was critical in eliminatinguncollectible tax debts to ensure the policy is used on the right subjects andprevents losses to the State budget.
Another member of the committee Vu Thi Luu Mai, said thattight regulations were needed to ensure transparency and fairness in thedeletion of uncollectible tax debts. She added that the supervision on thedeletion of uncollectible tax debts must also be enhanced.
The Ministry of Finance’s report showed that as of the endof 2017, tax debts totalled nearly 78.5 trillion VND (3.34 billion USD), 2.8 percentlower than December 31, 2016. Uncollectible tax debts were estimated to totalnearly 31.5 trillion (1.36 billion USD).-VNS/VNA
In a draft National Assembly resolution about handlinguncollectible tax debts which was recently published for comments, the Ministryof Finance proposed a sum of more than 27.7 trillion VND (1.2 billion USD) oftax arrears to be erased.
The finance ministry said that erasing uncollectible taxdebts would help ease the burden on tax management agencies and reduce costsfor the Government. The deletion of tax debts also helped provide a moreaccurate figures for developing State budget revenue and spending plans andother macro-economic indicators.
According to Deputy General Director of the GeneralDepartment of Taxation Phi Van Tuan, tax debts classified uncollectible weresums owned by taxpayers who were dead, lost or incapable of civil acts. Theuncollectible debts also included enterprises that had been dissolved ordeclared bankrupt but did not implement dissolution or bankruptcy procedures asregulated.
Nguyen Duc Hai, Chairman of the National Assembly’s Finance-BudgetCommittee, said that there was a lack of detailed regulations about how tohandle tax arrears, especially uncollectible sums.
For many years, uncollectible tax debts caused a lot ofdifficulty for management, Nguyen Thi Van Chi, a member of the committee said,adding that it was necessary to erase uncollectible sums, so tax managementagencies could focus on other tasks rather than spending time chasing thedebts.
However, transparency was critical in eliminatinguncollectible tax debts to ensure the policy is used on the right subjects andprevents losses to the State budget.
Another member of the committee Vu Thi Luu Mai, said thattight regulations were needed to ensure transparency and fairness in thedeletion of uncollectible tax debts. She added that the supervision on thedeletion of uncollectible tax debts must also be enhanced.
The Ministry of Finance’s report showed that as of the endof 2017, tax debts totalled nearly 78.5 trillion VND (3.34 billion USD), 2.8 percentlower than December 31, 2016. Uncollectible tax debts were estimated to totalnearly 31.5 trillion (1.36 billion USD).-VNS/VNA
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