HCMC – Despite tax agencies’ strong efforts in collecting tax debts, nearly VND43 trillion in tax arrears was still uncollectible, stated Minister of Finance Dinh Tien Dung.

The minister, on behalf of the prime minister, delivered a draft resolution on the erasure of tax arrears and fines on late tax payments for taxpayers who cannot afford their tax payments to the National Assembly (NA)  yesterday, October 22, the local media reported.

According to Minister Dung, the proportion of tax arrears in the total tax collections from domestic production and business activities fell from 12.2% in 2014 to 6.9% in August this year.

However, tax arrears by August 31 this year totaled VND88.3 trillion, up 8.2% over late last year. Of the total, irrecoverable tax debts accounted for 48.7%.

Dung attributed the issue to the high number of taxpayers who died, went missing or lost civil act capacity and enterprises that went bankrupt, were dissolved or had their business registration certificates revoked.

Under the Tax Management Law, the fine for late tax payments will be 0.03% per day. As of August, the fines for these lax taxpayers had amounted to nearly VND16.4 trillion.

Therefore, the Government proposed the NA work out measures to settle irrecoverable tax debts prior to July 1 next year.

Dung stressed that the tax arrear settlement is aimed at supporting taxpayers who cannot afford their tax payments, but the competent agencies must prevent tax evasion among those who abuse the policy.

Nguyen Duc Hai, head of the NA’s Finance and Budget Committee, said the committee agreed with the necessity to issue a resolution on the erasure of tax arrears and fines on late tax payments for taxpayers who cannot afford their tax payments.

He asked the Government to consider the liability of individuals and organizations involved in tax management as part of the cause of the high tax arrears.