Finance Sector: Satisfaction should be considered as a benchmark in administrative reform

Deputy Prime Minister Truong Hoa Binh delivered a speech in the working session with the Ministry of Finance.

Simplification of 46 procedures in terms of taxation and customs

Reporting to the Mission, Deputy Minister of Finance Do Hoang Anh Tuan said that in the 2015 and the first 6 months of 2016; all units in the Finance Sector have made every effort to perform administrative reform and attained achievement.

In institutional reform, in 2015 and in the first 6 months of 2016, the Ministry of Finance played a leading role in submitting to the Government for the National Assembly’ approval 5 law projects and 2 resolutions of the National Assembly Standing Committee; for the release of 28 decrees, 25 decisions and 20 projects; developing and issuing 312 circulars and joint circulars.

There have been breaking points in administrative formalities reform such as issuing 38 legal texts of 181 administrative formalities which were assessed in terms of impacts and cost; 27 decisions releasing administrative formalities under the Ministry of Finance’ management. On the basis of the foresaid decisions, information of the decisions has been updated in the national data of administrative formalities. The Minister of Finance has approved the solution of simplifying 46 administrative formalities in the field of taxation and customs.

Particularly in the field of taxation, succeeding the achievement, 31 more administrative formalities have been annulled, 40 have been amended. Till now, there are 355 administrative formalities compared with 385 in December 31, 2015. 63 administrative formalities in Customs have been amended and streamlined at all three levels (the General Department of Customs, Provincial Customs Department and Customs Branch).

The Ministry of Finance has been proactive in coordination with 11 ministries and related agencies to review and issue specialized inspection procedures in a uniform manner. Currently, 9 specialized inspection stations have been established at 7 units.

According to summary of administrative formalities reform during the first 6 months of 2016, Customs reduced average clearance time from 21 days to 14 days for exports and 13 days for imports. The total amount of hours of undertaking administrative formalities in taxation cut down by 420 hours (from 537 hours to 117 hours).

Decreased 7,000 billion dong/ year in cost

Reporting in detail the duty of administrative formalities reform in taxation, Mr. Bui Van Nam – the Director General of Taxation said that the General Department of Taxation released Action Plans to put the tasks into deliverables that would be carried out at all levels and to make each unit, each staff grasp thoroughly the spirit of administrative formalities reform.

Therefore, the total number of tax payment hours in Vietnam has reached 117 hours/ year, beyond the target set in Resolution No. 19/NQ-CP by the Government on measures to push production, trading and raise national competition capacity, striving for the average level of regional countries ASEAN-4.

Working session at the General Department of Taxation

“As calculated by international organizations, reduction of tax payment hours would help diminish costs of enterprises and the society by more than 7,000 billion dong per year” stressed Mr. Nam.

Vietnam’s achievements in tax administrative formalities reform have been recognized by the international community. As recorded in Business Environment Report in 2016, the indicator of “Tax payment” in Vietnam increased by 5 levels, from the position No. 173/189 up to No. 168/189 amongst ranking countries.

Notably, as shown in the survey of Vietnam Chamber of Commerce and Industry (VCCI), 71% of tax payers have shared their satisfaction of reform achievement by Tax authorities over the past years.

The results of reforming tax administrative formalities can be seen in the simplification of procedures and tax registration time. Tax payers have to submit only one dossier at the Single Window section. The dossier would be processed within 03 days maximum (different from the former time of 05 -10 days).

The General Department of Taxation also shortened the time for handling the case “Advance examination, later drawback” from 60 days to 40 days. For some cases “Advance examination, later drawback”, the time has reduced from 15 days to 03 days.

In parallel, Taxation administration cut down the time for processing Tax declaration dossier extension procedures from 05 working days to 03 working days.

Devoted, Honest, Transparent and Modern Delivering directions, Deputy Prime Minister Truong Hoa Binh highly appreciated the General Department of Taxation’ effort in reforming administrative formalities in particular and the Ministry of Finance in general.

In order to speed up the reform in administrative formalities in the upcoming time, the Deputy Prime Minister requested the Ministry of Finance to concentrate on efficient performance of the main tasks assigned by the Government; implement measures to address difficulties raised by the people and enterprises in a uniform and comprehensive way; promote administrative reform in taxation and Customs; shorten the processing procedures; reduce performance time; conduct modernization, IT application; ensure transparency and meet the State management agencies’ responsibilities.

As well, discipline should be reinforced, State management efficiency should be raised; the people and enterprises’ satisfaction should be regarded as a benchmark; coordination amongst ministries and the Ministry of Finance’ agencies should be stressed; legal documents and policies need to be reviewed for solutions.

The Deputy Prime Minister directed the Ministry of Finance to soon submit the Government for regulations on the self-controlled mechanism of State established units in the field of economics and others. In addition, it was necessary to clarify the operation mechanisms for state established units under the models of enterprises and coordinate with associated ministries and agencies for developing decrees on the self-controlled mechanisms for state established units in seven fields (Health care, education and training, career tuition, culture, sports and tourism, science and technology, information and communication, state established units in terms of economics, and others fields) to assure their operational efficiency.

Finally, Mr. Truong Hoa Binh emphasized that supervision, specialized examination, inspection and assessment of administrative reform at units should be enhanced in addition to effective implementation of human resource development measures and building up the financial force that are devoted, honest, transparent and modern.