Directive No. 41/1998/CT-TTg On continuing to organize and implement new tax laws

DIRECTIVE

Regarding the continued organization and implementation of new tax laws

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The Value Added Tax Law and other new tax laws will take effect from the beginning of 1999, marking an important step in the second phase of the tax reform program that the Government is implementing to promote production development. The new tax laws are being implemented against the backdrop of significant domestic and global economic changes, which inevitably lead to initial difficulties and obstacles.

The preparation for the implementation of the new tax laws has been actively carried out, including drafting and promulgating guiding documents under the laws, assigning tax identification numbers to taxpayers, consolidating the tax collection machinery, and promoting the new tax laws... However, there are still many urgent tasks that need to be continued.

Based on practical experience and requirements, and to effectively implement Directive No. 44/CT-TW dated November 4, 1998 of the Politburo on strengthening Party leadership in the implementation of the Value Added Tax Law and other new tax laws, the Prime Minister requests the Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of provincial and municipal People's Committees directly under the Central Government to urgently carry out the following tasks:

1. Ministries, sectors, and localities shall immediately establish Steering Committees for the Implementation of New Tax Laws, headed by a leader of the Ministry, sector, or provincial People's Committee, with members comprising representatives of relevant agencies and units under their jurisdiction.

2. The Steering Committees for the Implementation of New Tax Laws at the ministry, sector, and local levels shall be responsible for:

a) Organizing research and dissemination of the viewpoints, objectives, and requirements of the second phase of the tax policy reform system; focusing on the contents of each new tax law for key cadres in the sector and locality.

b) Organizing guidance, promotion, and education for all social strata to understand the purpose, significance, and content of the new tax laws, ensuring that taxpayers understand and comply well with the opening and recording of accounting books, accounting for new types of taxes, strictly implementing the use, recording of invoices and vouchers, tax registration; self-declaration, calculation, and payment of taxes into the State Treasury according to tax notifications.

c) Directing the resolution of difficulties and obstacles encountered during the implementation of the new tax laws within their authority. In cases exceeding their authority, they must report and propose measures for handling to the Steering Committee for the Implementation of New Tax Laws at the central level.

d) Establishing and implementing measures to stabilize prices without affecting production and business operations and people's lives, guiding affiliated enterprises to recalculate costs to ensure full tax payments without increasing prices.

3. Production and business establishments shall be responsible for:

a) Organizing the dissemination and study for management staff about the purpose, significance, and content of the new tax laws to ensure strict compliance with the provisions of the laws.

b) Organizing the restructuring of production and business plans, modernizing technology, improving management skills, increasing labor productivity, reducing costs, and ensuring full fulfillment of tax obligations as stipulated by the new tax laws.

c) Strengthening the financial accounting system in the enterprise to strictly implement the invoice, voucher, and accounting bookkeeping system as prescribed.

d) Self-calculating, declaring, and paying taxes through the State Treasury according to tax notifications from tax authorities at all levels.

đ) Reviewing costs, determining reasonable selling prices, absolutely not taking advantage of the application of value-added tax to increase prices, must implement price registration and posting, and sell according to posted prices, preventing sudden price fluctuations that negatively impact the economy and society.

4. The Ministry of Finance shall be responsible for:

a) Organizing training on new tax laws for both internal and external staff.

b) Strengthening organizational structure, reorganizing the tax administration system from central to local levels to enhance capacity, sense of responsibility, and play a role in state management in tax collection, guidance, inspection of tax enforcement, and strict legal handling of cases of tax fraud, tax evasion, or resistance to the implementation of new tax laws.

c) Cooperating with various levels and sectors to strictly implement Directive No. 26/1998/CT-TTg dated July 11, 1998 of the Prime Minister on strengthening tax law promotion and education work.

d) Preparing conditions to serve the management of new taxes such as printing sales invoices, providing them to businesses, building tax management procedures using computers, training staff, and equipping computer equipment for tax agencies to serve tax management.

đ) Collecting and resolving difficulties and obstacles encountered during the implementation of new tax laws. If beyond their authority, they should propose solutions and report to the Steering Committee for the Implementation of New Tax Laws at the central level.

5. The General Department of Customs shall be responsible for:

a) Providing specific guidance on the application of value-added tax to imported goods; organizing training on new tax laws for customs staff; reorganizing the tax collection system to suit the management of new types of taxes.

b) Cooperating with the Ministry of Trade, Ministry of Finance, Ministry of Public Security, and provincial and municipal People's Committees to implement effective anti-smuggling measures such as strengthening sea and land border inspections, continuing to affix seals on imported goods...

6. The Government Price Control Board shall be responsible for:

a) Guiding enterprises to review costs, calculate, and handle reasonable selling prices based on the principle:

- For goods and services subject to government pricing, no price increases will be allowed in the first six months of 1999, and the government-set price includes value-added tax.

- For goods and services whose prices are determined autonomously by enterprises, directing and guiding enterprises to review costs, determine reasonable selling prices accepted by the market, maintaining the price level formed at the end of 1998, which already includes value-added tax.

b) Coordinate with the Ministry of Trade, the Ministry of Finance, the People's Committees of provinces and centrally governed cities to direct the Departments of Price Adjustment, market management agencies, and tax authorities to inspect the implementation of price labeling and sales according to labeled prices for essential goods directly affecting people's lives by production and business establishments.

c) Coordinate with the Ministry of Finance to issue guiding documents on the principles and accounting systems for production costs to have a basis for controlling costs of enterprises, especially those producing monopoly products and those producing important goods to promptly prevent speculative activities, price hikes, and unjust profits.

d) Closely monitor the price fluctuations of certain imported goods to propose timely measures.

7. The Ministry of Trade shall be responsible for:

a) Monitoring and managing market conditions, taking measures to reserve materials and goods to ensure sufficient supply for production and circulation, particularly during the Tet holiday period.

b) Coordinate with the Ministry of Finance and the General Department of Customs to issue guiding documents on determining the criteria for origin of goods to apply general tariff rates, preferential tariff rates, special preferential tariff rates, and the list of consumer goods subject to immediate taxation.

8. The Ministry of Science, Technology, and Environment shall coordinate with the Ministry of Trade and the Ministry of Finance to issue regulations for competent authorities regarding the inspection and quality control of imported and exported goods, and the final decision-making authority in case of complaints.

9. The State Bank of Vietnam shall coordinate with the Ministry of Finance to study measures to support enterprises facing difficulties in capital, such as guiding the implementation of tax guarantee deposits for import taxes and value-added taxes on imports; providing loans for importing goods including all types of taxes payable on imports.

10. The Steering Committee for Implementing New Tax Laws of the Government shall be responsible for arranging teams of officials to closely follow and monitor the implementation at ministries, sectors, and localities, and compile reports to submit to the Prime Minister.

Upon receipt of this Directive, the Prime Minister requests that ministries, sectors, and localities immediately implement the assigned tasks to ensure the effective enforcement of new tax laws, serving the successful achievement of economic and social development goals and state budget plans for 1999, thereby laying a foundation for future years' development.