At the Q&A session, many NA deputies asked the Finance Minister for solutions to prevent tax losses from e-commerce activities, particularly on trade activities through Facebook and Google.
Deputy Nguyen Quang Duong from Quang Nam province asked a question regarding the statistics from the Ministry of Information and Communications that say Vietnam now has 35 million Facebook users, and online advertising earns billions of Vietnamese dong per year. So, how can tax agencies manage the tax collection of this activity?
Minister Dung replied that e-traders on Google have made tax declarations but the taxes have yet to be collected, adding that the Ministry of Finance is coordinating with the Ministry of Information and Communications and internet suppliers to continue to deal with this issue.
The minister noted that tax agencies have found many business addresses on the internet and have required them to register and declare their tax code. In the long term, tax collection will require the development of non-cash payments.
At the same time, online businesses including Facebook will be required to have a commercial presence in Vietnam to declare and pay taxes.
He stated that the finance sector also needs to apply information technology in working to catch up with the actual situation and respond to new types of business in reality.
The Finance Minister received many questions about public debts, an issue of great concern amid increasing public debt and inefficient public investment.
Deputy Nguyen Tao from Lam Dong province said that public debt has been the concern of voters throughout the country, adding that the current public debt is over 60% of GDP and close to the ceiling rate which will pose high risks to the economy amid the current economic difficulties, such as declining tax and fee collection per GDP while the government still negotiates new loans. Tao asked "How does this affect the management of public debt and public spending in the near future?"
Deputy Tran Hoang Ngan from Ho Chi Minh City also posed questions about solutions to ensure public debt safety.
Minister Dung admitted that public debt is rising fast with a high pressure of debt repayment. Thus, the Finance Ministry has issued a resolution on budget restructuring and ensuring public debt safety which limited the ceiling of public debt not exceeding 65% of GDP, and have implemented many measures to strengthen the management over public debt. The NA is also discussing the revised Public Debt Law which will be approved soon, the minister said.
Dung noted that Vietnam has reduced ODA loans from July this year because of high interest rates and is focusing its capital on important projects.
In addition, it is necessary to define the budget deficit and the path to reduce the budget deficit and continue tightening the issuance of Government guarantees for projects.
"It is necessary to control public debts, and the initial steps are being implemented on the right track. The indicators on public debts are within the limits," the minister stated.
Finance Minister Dinh Tien Dung was the first cabinet member to attend the NA Q&A session on November 16. The Q&A session will run until November 18.
