Small businesses should be prioritized in tax reforms

Speaking at a forum on tax and customs authorities supporting businesses and promoting double-digit economic growth on October 8, Deputy Minister of Finance Tran Quoc Phuong said achieving double-digit growth was an ambitious target requiring concerted efforts from the entire political system, the business community and society.

He said Vietnam's development needs in the new period were placing greater demands on the financial sector, particularly tax and customs authorities.

Tax administration is undergoing a significant shift from traditional methods toward a modern system built on data, technology and taxpayer compliance.

Tax policies are no longer designed solely to secure state budget revenue. They are increasingly being used to support production and business activities, stimulate investment and innovation, and enhance the economy's competitiveness.

Meanwhile, the customs sector is pressing ahead with reforms and modernization, aiming to facilitate trade and improve administrative efficiency through streamlined procedures and greater use of technology. Customs was also among the earliest government agencies to adopt risk-based management.

"Customs today does more than regulate import and export activities, with Vietnam's total merchandise trade turnover projected to soon reach $1 trillion. It also directly affects the time and costs businesses face, as well as their ability to participate in global supply chains," Phuong emphasized.

Progress in tax and customs reforms has helped reduce compliance time and costs, improve transparency, strengthen the investment and business environment, and build greater confidence among enterprises.

Dau Anh Tuan, head of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), said small and micro-sized enterprises should receive greater priority in tax and financial policies.

Support measures for smaller businesses and household enterprises should remain a focus, particularly efforts to simplify tax declaration and payment procedures, he said.

Drawing on practical experience, Tuan highlighted a recurring problem: tax legislation may remain unchanged while amendments to sector-specific laws create inconsistencies in how regulations are interpreted and enforced.

He therefore called for closer alignment between tax laws and sector-specific legislation to reduce legal and compliance risks for businesses.

Tuan also pointed to concerns among enterprises that tax policies could be applied retrospectively following inspections or audits.

He expressed hope that stronger oversight of policy implementation would help address these concerns and limit unexpected risks for businesses.

Businesses call for policy stability and lower compliance risks

Dao Cong Quyet, head of communications at the Vietnam Automobile Manufacturers' Association (VAMA), urged authorities to maintain stable tax policies and establish clear implementation roadmaps for major taxes affecting domestically manufactured vehicles.

Such predictability would allow automakers to plan production, invest in technology and expand their manufacturing operations in Vietnam with greater confidence.

VAMA also proposed further improvements to tax and fee policies supporting the green transition, including consideration of incentives for environmentally friendly vehicles while taking domestic manufacturing and assembly activities into account.

Another priority, according to the association, is stronger data connectivity and information sharing between government agencies through the National Single Window mechanism.

Better integration among customs authorities, tax agencies and the Vietnam Register could reduce the need for businesses to submit additional documents, accelerate customs clearance and simplify related administrative procedures.

VAMA also called for a unified database providing guidance on commodity classification codes, making customs declarations more straightforward and consistent for businesses.

Responding to the proposals, Tran Duc Hung, deputy director of the Customs Department, said the agency had upgraded the National Single Window system to its third phase and continued to receive feedback from businesses on commodity classification.

He noted that customs authorities already have a mechanism for advance determination of commodity codes, supported by specialized testing centers.

These arrangements allow businesses to identify the appropriate classification codes in advance while promoting greater consistency in enforcement.

Representing the beverage industry, the Vietnam Beer-Alcohol-Beverage Association (VBA) raised concerns over excise tax policies affecting beer and alcoholic beverages.

The association urged tax authorities to continue recognizing the difficulties facing beverage manufacturers and introduce appropriate support measures.

In response, Mai Son, deputy director of the Tax Department, said excise tax policies for beer, alcohol and soft drinks needed to be considered comprehensively, balancing several competing priorities.

These include securing government revenue, supporting the sustainable development of businesses, protecting public health and influencing consumer behavior.

Regarding essential consumer goods, Son said the government was also pursuing policies to reduce taxes on certain product categories to encourage consumption, production and the circulation of goods.

He affirmed that feedback and recommendations from the business community would be recorded, consolidated and submitted to the relevant authorities for consideration.

Nguyen Le