On April 23rd, Deputy Prime Minister Le Minh Khai signed Decision No. 508/QD-TTg approving... Strategy for reforming the tax system until 2030Proposed changes to key taxes, fees, and charges include: excise tax, land use tax, value-added tax (VAT), import and export tax, corporate income tax (CIT) and personal income tax (PIT); environmental resource tax and several other taxes belonging to the state budget.
Regarding the reform of the tax policy system, the comprehensive improvement of Vietnam's tax system is in line with international standards and practices. At the same time, it meets the resource requirements for implementing the 10-year socio-economic development strategy from 2021 to 2030.
Increase excise tax on alcohol, beer, and tobacco.
To limit production and consumption and fulfill international commitments, a roadmap for adjusting and increasing taxes on tobacco, beer, and alcohol needs to be developed. The consumption tax rates on tobacco, beer, and alcohol should be adjusted to suit the socio-economic conditions of the 2021-2030 period.
Simultaneously, the study examines the application of a combination of proportional and absolute tax rates to certain goods and services subject to excise tax.
Additional regulation of house and land tax collection.
An important aspect of Decision No. 508 that has attracted attention is the taxes related to the use of agricultural land and non-agricultural land. The exemption of agricultural land use tax will continue until the end of 2025, contributing to the promotion of agricultural and rural development.
The study aims to increase land regulation and add taxes on houses to promote efficient use of land and housing, curb speculation, ensure reasonable and stable revenue for the state budget, and align with Vietnam's socio-economic conditions and international practices.
Adjustment of Value Added Tax
In the policy to reform the tax system by 2030, VAT will move towards applying a single tax rate, expanding the tax base for VAT by reducing the number of goods and services exempt from tax and the number of goods and services subject to the 5% tax rate.
The study proposes increasing VAT rates according to a roadmap and adjusting the revenue threshold for applying the deduction method to better reflect reality. It also suggests uniformly applying a percentage-based tax calculation method to taxpayers whose revenue is below or does not meet the eligibility criteria for the deduction method.
Adjusting import and export taxes
Research and revise import and export tax policies to promote exports, increase domestic value, and limit the export of raw materials. Implement preferential policies to promote the development of key industries, support priority sectors, and ensure consistency with the country's socio-economic development orientations in each period and international commitments.
Continue to streamline the number of tariff rates to simplify the import tariff schedule, striving to reduce it from the current 32 rates to approximately 25 rates by 2025 and reach 20 rates by 2030.
Adjusting corporate income tax and personal income tax.
Corporate income tax incentives should be reviewed and amended or abolished if they are no longer suitable for development and international integration requirements. The integration of tax exemptions and reductions with social policies should be minimized, ensuring tax neutrality for stable application in the medium and long term.
Implementing corporate income tax incentives for small and micro enterprises, the policy of attracting foreign investment shifts its focus from quantity to quality, and encourages investment in key industries and areas that need investment promotion.
Regarding personal income tax, review the taxable subjects and study amendments and additions to adjust the number and tax rates to match the taxable income and the nature of each type of income. At the same time, create conditions for simple, quick, and accurate tax settlement, and prevent tax evasion.
The study aims to revise and supplement regulations on tax exemptions and reductions for taxpayers, in accordance with the socio-economic context of our country in each period.
Adjusting resource and environmental taxes
With the tax system reform plan until 2030, resource tax regulations, calculation prices, production volumes, tax brackets and rates, and exemptions need to be revised to ensure transparency and clarity. This will ensure that resource tax policies are effective tools for managing, protecting, and encouraging the economical and efficient use of resources, while also enhancing their quality and value.
To raise environmental awareness, it is necessary to study expanding the scope of environmental protection tax to include polluting goods, and adjusting the tax framework and rates to ensure the effectiveness of the environmental protection tax policy. Applying tax policy as an important economic tool contributes to limiting the production and use of goods that cause serious environmental pollution.
