Hanoi – Deputy Prime Minister Le Minh Khai has approved reforms to the tax system.

The strategy aligns Vietnam’s tax policy with international practices to meet resource requirements and realise the 10-year socio-economic development strategy to 2030.

It will help stabilise State budget collections from taxes and costs in association with socio-economic development strategies for 2021-25 and 2026-30.

In the initial phase, support will be offered to help businesses and people resume operations after the negative impacts of COVID-19.

Taxpayer satisfaction with tax agencies is hoped to reach at least 90 percent by 2025, and support for people paying taxes electronically to top 70 percent.

The strategy also looks to fine-tune regulations related to value-added taxes on exports and services, and amend those on tax exemptions and refunds in a simple, transparent and concerted manner with related laws.

It will build a roadmap on adjusting taxes on tobacco and alcoholic beverages and review consumption taxes on products in line with socio-economic conditions for the 2021-30 period.

The strategy will strive to reduce import tariffs to about 25 percent by 2025 and 20 percent by 2030, from the current 32 percent and devise tax incentives for small- and medium-sized enterprises (SMEs).

Furthermore, it will increase taxes on land and houses and impose taxes on sectors that harm the environment.