Ensuring transparency in tax application

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

Delegate Bo Thi Xuan Linh affirmed that the development of the amended Law on Special Consumption Tax (SCT) aims to implement the Party and State's policy on socio-economic development until 2030, converting to green energy, reducing harmful gas emissions to health and the environment; promptly removing difficulties for production and business activities, reforming administrative procedures, clearing and promoting resources for socio-economic development; ensuring the unity and synchronization of the legal system; in line with international tax reform trends; ensuring stable state budget revenue.

National Assembly Delegate of Binh Thuan Province - Bo Thi Xuan Linh discussed this morning, November 22.

Ensuring transparency in tax application

Specific comments on Taxable objects (Article 2); on goods (Clause 1); Point a, Clause 1, regulations on tobacco include many different types of products such as cigarettes, cigars, shredded tobacco... However, delegates suggested that it is necessary to add more clarity on quality standards or handling methods for substandard products to ensure transparency in tax application. At the same time, it is suggested to add forms of electronic cigarettes to point a.

At Point h, Clause 1, the delegate proposed to remove the phrase: "except for the type designed by the manufacturer only for installation on means of transport including cars, railway cars, ships, boats, and airplanes" and not to stipulate the above exclusions because the regulation on the type designed by the manufacturer only for installation on means of transport including cars, railway cars, ships, boats, and airplanes is very easy to exploit to avoid paying special consumption tax. On the other hand, regardless of the purpose of use, it must go through the process of production, circulation, purchase, sale, and exchange.

Commenting on Point g, Clause 1, the delegate proposed not to include gasoline of all kinds (regular gasoline, E5 gasoline, E10 gasoline) in the list of products subject to special consumption tax, because gasoline products already have to pay environmental protection tax. "I think that imposing special consumption tax on gasoline increases production costs, increases inflation.... Moreover, imposing special consumption tax on gasoline but not on diesel will not ensure fairness, while diesel is an alternative fuel product to gasoline, with a higher level of environmental pollution" - delegate Bo Thi Xuan Linh analyzed.

Need to regulate in a more general direction

Commenting on the services in Clause 2, according to the delegate, Clause 2 has listed quite a lot of services, such as: dance halls, massage, karaoke, casinos, electronic games with prizes...; however, in the current conditions of digital economy and strong development of artificial intelligence, in the future, many new forms of business may appear, especially online services. To ensure coverage and not to miss any taxable subjects, the delegate suggested that it is necessary to regulate in a more general direction.

Clause 3 of the draft stipulates: “In case it is necessary to amend or supplement the subjects subject to special consumption tax in this Article to suit the socio-economic context in each period, the Government shall consider and prescribe.”. The delegate said that this provision is not consistent with the provisions of the Law on Promulgation of Legal Documents. Assigning the Government to amend or supplement the subjects subject to special consumption tax as above is not consistent with the authority prescribed by current law.

Regarding the non-taxable subjects in Article 3, the delegate proposed to edit point a in the direction of removing a phrase "within the limit exempted from import tax according to the provisions of the law on export tax and import tax" to avoid duplication.

Clause 5 stipulates: “In case it is necessary to amend or supplement the subjects not subject to special consumption tax in this Article to suit the socio-economic context in each period, the Government shall consider and prescribe.” Similar to the provision in Clause 3, Article 2, assigning the Government to prescribe as above is not in accordance with the provisions of the Law on Promulgation of Legal Documents.

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

For goods such as: "biologically powered cars, the tax rate is 50% of the tax rate applied to the same type of cars specified in points 4a, 4b, 4c and 4d..." of the Tariff is still too high, not having a strong incentive effect to develop this type of environmentally friendly goods in the current trend; therefore, the delegate proposed to reduce it to about 30% to 40%.

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