Ensuring transparency in tax application.

BTO - Participating in the discussion on the draft Law on Special Consumption Tax (amended) this morning, November 22nd, National Assembly representative Bo Thi Xuan Linh from Binh Thuan province expressed her agreement with the necessity of enacting the Law.

Representative Bo Thi Xuan Linh affirmed that the amendment of the Law on Special Consumption Tax aims to implement the Party and State's policy on socio -economic development until 2030, transition to green energy, reduce emissions of gases harmful to health and the environment; promptly remove difficulties for production and business activities, reform administrative procedures, unlock and utilize resources for socio-economic development; ensure the uniformity and consistency of the legal system; conform to international tax reform trends; and ensure the stability of state budget revenue.

National Assembly representative Bo Thi Xuan Linh from Binh Thuan province participated in the discussion this morning, November 22nd.

Ensuring transparency in tax application

Regarding specific comments on the taxable subjects (Article 2); for goods (Clause 1); Point a, Clause 1, stipulates that tobacco includes various products such as cigarettes, cigars, pipe tobacco, etc. However, the representative suggested that clearer quality standards or handling procedures for substandard products should be added to ensure transparency in tax application. They also proposed adding electronic cigarettes to Point a.

Regarding Point h, Clause 1, the representative proposed removing the phrase: "except for those designed by the manufacturer solely for installation on transport vehicles including automobiles, railway carriages, ships, boats, and aircraft." Such exclusions should not be stipulated because the regulation excluding those designed by the manufacturer solely for installation on transport vehicles including automobiles, railway carriages, ships, boats, and aircraft is easily exploited to avoid paying special consumption tax. Furthermore, regardless of the purpose, all materials must go through the processes of production, circulation, buying, selling, and exchange.

Regarding point g, clause 1, the delegate suggested that gasoline of all types (regular gasoline, E5 gasoline, E10 gasoline) should not be subject to excise tax, as gasoline already has to pay environmental protection tax. “I believe that imposing excise tax on gasoline increases production costs and inflation… Furthermore, imposing excise tax on gasoline but not on diesel fuel would not ensure fairness, while diesel fuel is a fuel substitute for gasoline and has a higher level of environmental pollution,” delegate Bo Thi Xuan Linh analyzed.

The regulations need to be more general .

Commenting on the services in Clause 2, the delegate noted that Clause 2 already lists a fairly comprehensive range of services, such as: nightclubs, massage parlors, karaoke, casinos, electronic games with prizes, etc.; however, given the current strong development of the digital economy and artificial intelligence, many new business forms may emerge in the future, especially online services. To ensure comprehensive coverage and avoid overlooking any taxable entities, the delegate suggested that the regulations should be more general.

Clause 3 of the draft stipulates: "In cases where it is necessary to amend or supplement the subjects liable to excise tax in this Article to suit the socio-economic context of each period, the Government shall consider and regulate." Representatives argued that this provision is inconsistent with the Law on the Promulgation of Legal Normative Documents. Entrusting the Government with the authority to amend or supplement the subjects liable to excise tax as described above is inappropriate under current law.

Regarding the tax-exempt items in Article 3, the representative suggested revising point a by removing the phrase "within the tax-exempt limits as prescribed by export and import tax laws" to avoid duplication.

Clause 5 stipulates: "In cases where it is necessary to amend or supplement the subjects not subject to special consumption tax in this Article to suit the socio-economic context of each period, the Government shall consider and regulate." Similar to the provision in Clause 3 of Article 2, entrusting the Government with the regulation as above is inconsistent with the provisions of the Law on the Promulgation of Legal Normative Documents.

Regarding tax rates in Article 8, for goods such as tobacco, alcohol, and beer, the representative proposed choosing option 2, in order to strongly support and promote the effective implementation of the Law on Prevention and Control of Tobacco Harm and the Law on Prevention and Control of Alcohol Harm, contributing to reducing the rate of tobacco and alcohol use, improving public health, and reducing the burden of diseases caused by tobacco and alcohol.

Regarding goods such as "automobiles powered by bioenergy, the tax rate is 50% of the tax rate applied to similar vehicles as stipulated in points 4a, 4b, 4c, and 4d..." of the Tariff Schedule. This is still too high and does not strongly encourage the development of this environmentally friendly product in the current trend; therefore, the representative proposed reducing it to approximately 30% to 40%.

Source: https://baobinhthuan.com.vn/dam-bao-tinh-minh-bach-trong-ap-dung-thue-125979.html