Positive changes after new policies on taxation
Ha Noi, June 24 (VNA) -- Viet Nam registered a GDP growth rate of 7.3 percent in the first six months of this year, compared with 6.2 percent in the same period last year. High year-on-year increases were seen in the production of crude oil, up by 21.4 percent; cement, 17.9 percent; TV sets, 23.1 percent; and cars, 52.9 percent.
Total budget revenues in the six months accounted for about 55 percent of the yearly target, or 7.9 percent higher than the same period last year. Particularly, tax revenue was estimated at 55.2 percent of the yearly target, registering a 6.3 percent year-on-year increase. Payments made by the State-run sector accounted for 50.6 percent, while payments made by foreign invested enterprises (excluding crude oil) made up 52.7 percent. Income tax amounted to 51.5 percent; fees and charges collection, 52.2 percent; and charges on petrol and oil, 56.8 percent of the yearly targets.
Tax revenues of 39 provinces and cities across the country exceeded 50 percent of the estimations for 2001.
Year-on-year decreases were seen in the collection of a number of taxes including Value Added Tax (VAT), the Domestic Enterprises, Land and Housing Tax and the Agricultural Land Tax because of difficulties farm produce sales and the drop in rice and coffee prices.
The achievements were attributed to positive changes in economic activities and the renovation of policies and micro managerial methods of the Government and authorities at all levels, expecially the enforcement of a number of newly-revised tax policies.
The Government's Decision on the Value Added Tax, effective as from Jan. 1, 2001, has basically helped businesses to overcome difficulties that they faced in two years of implementing the VAT law.
A tax cut on imports has been applied to 700 more kinds of goods in implementation of the Agreement on Common Effective Preferential Tariff (CEPT) of the ASEAN countries and the ASEAN Free Trade Area. Viet Nam has negotiated with other ASEAN member countries to make a list of goods and common import-export tax rates in the region which is expected to be effective from 2002.
To assist farmers overcome recent difficulties in sales of farm produce, the tax service has actively implemented the Government's May 24, 2001 Decision on exemption and 50 percent tax cut on agricultural land use for poor farmer households as well as rice and coffee growers nationwide.
Many circulations and decisions have been issued for effective implementation of the Government's Decree on systematised management of fees and charges collection.--VNA
