VietNamNet Bridge - The receipts from tax collection are increasing steadily year after year, but are never enough to cover expenses. Experts have warned that higher taxes and fees will burden people and businesses.

The reports from the Ministry of Planning and Investment show that the task of collecting tax every year is always fulfilled. While receipts from import/export tax and crude oil exports are on the decrease, the receipts from domestic sources account for increasingly high proportions. 

The figure rose from 59 percent in 2006-2010 to 68 percent in 2011-2015. In 2015 alone, the revenue from domestic taxes accounted for 74.4 percent of total revenue.

In 2016, the government plans to collect VND1,000 trillion in taxes and fees, an increase of 14 percent over the last year. This is the first time Vietnam’s targeted budget revenue exceeds the VND1,000 trillion threshold, which is equal to 20 percent of Vietnam’s GDP in 2016.

Experts have warned that the revenue from import/export taxes will be decreasing gradually because Vietnam has joined more free trade areas. The revenue from crude oil exports will also be lower because of the sharp oil price fall.

Experts have warned that the revenue from import/export taxes will be decreasing gradually because Vietnam has joined more free trade areas. The revenue from crude oil exports will also be lower because of the sharp oil price fall.

In order to offset the revenue decreases, the Ministry of Finance (MOF) has drawn up a plan to increase revenue from domestic sources. 

These include p revenue from the sale of state capital in enterprises. It is estimated that the State has 1,300 trillion worth of capital in enterprises, while it has divested 5 percent of the amount.

MOF hopes that the drastic measures to be taken to prevent businesses from deferring tax payments and the warming up of the national economy will increase revenue from domestic sources.

People are concerned that MOF would impose higher taxes and fees on enterprises, which will make the financial burden on their shoulders heavier.

When the import tariff on petroleum products decreased, MOF then raised the environmental protection tax by 300 percent.

MOF once proposed to impose a 10 percent tax on fizzy soft drinks and it only gave up the plan after facing strong opposition from manufacturers.

Most recently, the ministry proposed to raise the excise tax by three times.

Nguyen Duc Thanh, director of the Vietnam Institute for Economic and Policy Research, noted that Vietnam has many different kinds of taxes and fees.

The rates of some kinds of basic taxes, such as the corporate income tax and personal income tax, are not high compared with other countries. However, Vietnam has many kinds of other taxes and fees to increase  budget revenue, such as the environment fee and road tolls. As a result, Vietnamese businesses have to pay a lot in taxes and fees.

Tran Thuy