PM Approves 10-Year Tax Reform Strategy

Laws - The tax reform strategy for the next 10 years would ensure transparency. Prime Minister Nguyen Tan Dung has approved a 10-year tax reform strategy for 2011-20 in order to meet the needs of the market economy while enhancing revenues sources, increasing production capacity, and sharpening the competitiveness of domestic enterprises.

Government Decision No 732/QD-TTg issued on Tuesday stated that the tax reform strategy for the next 10 years would ensure transparency and aim at encouraging exports and investment, especially high-technology investment in remote and rural areas.

The comprehensive strategy encompass reforms to the value-added tax (VAT), personal and corporate income taxes, special consumption taxes, import-export taxes, environmental taxes, and fees and duties on mineral and land use rights and agricultural lands.

Under the plan, tax revenues would be increased by 70 per cent by 2015 and 80 per cent by 2020. By 2015, the State budget would be equal to about 23-24 per cent of gross domestic product (GDP).

By 2015, tax administration would also be modernized to global standards, with simpler administrative procedures that ensure over half of all enterprises use electronic filing.