National Assembly Chairman: Tax refunds for businesses must be done immediately

Presenting the report on the people's petition work in May and June, Mr. Duong Thanh Binh said that the People's Petition Committee recommended that the National Assembly Standing Committee request the Government and the Prime Minister to pay attention to directing a number of issues of current concern to voters, including tax refunds for businesses.

Specifically, the Ministry of Finance directed the General Department of Taxation to urgently guide the Hanoi Tax Department in implementing value-added tax refunds for cassava starch exports of An Phat Company in accordance with the provisions of the law on tax and value-added tax refunds.

The results of the settlement are proposed to be reported to the National Assembly Standing Committee before August 10, 2023; directing the Department and specialized units to urgently complete the legal framework in the insurance sector, strengthen inspection and examination activities on insurance sales through credit institutions and foreign bank branches to improve the health of the insurance and life insurance markets.

During the discussion, Chairman of the Economic Committee Vu Hong Thanh continued to express his opinion on the delay in refunding value added tax to businesses, typically An Phat Joint Stock Company.

Emphasizing that the National Assembly's Resolution requires removing difficulties in VAT refunds, and the Prime Minister has also given instructions, Mr. Vu Hong Thanh said that if the General Department of Taxation does not provide instructions, both the National Assembly's request and the Prime Minister's instructions "are almost worthless".

Chairing the discussion session, Vice Chairman of the National Assembly Tran Quang Phuong invited Deputy Director General of the General Department of Taxation (Ministry of Finance) Vu Chi Hung to clarify the direction for handling the delay in tax refunds for businesses.

Mr. Hung said that the VAT refund work according to the Tax Law and the guiding circular of the Ministry of Finance, the tax refund dossier is divided into two cases: pre-inspection and post-refund dossier and pre-inspection and post-refund dossier.

For dossiers subject to pre-inspection and post-refund, if they meet all the conditions for value added tax refund as prescribed, the tax authority will be completely timely and in accordance with the regulations. For dossiers subject to pre-inspection and post-tax, they need to be inspected to have a basis for resolving and processing tax refunds as prescribed.

According to the Deputy Director General of the General Department of Taxation, through reviewing information in recent years, the tax authority has found that some businesses refunding export taxes on wood and forestry products are at high risk. Therefore, the tax authority must carry out inspection and verification work. There are some subjects who have taken advantage of the State's policy mechanism to cheat and appropriate tax refunds.

National Assembly Chairman Vuong Dinh Hue stated that the National Assembly has passed a Resolution and the Government has given instructions. “It is very difficult for businesses to access capital, and tax refunds are people’s money and they are not allowed to be refunded. If this continues for a few more years, will our businesses be able to survive?” he questioned.

“Enterprises that pay input tax must of course be refunded output tax. This is the State’s obligation, not the people’s request. This is their money. The National Assembly allocates the fund for refunds every year, but it is delayed like this. The tax refund must be done immediately,” the National Assembly Chairman requested.

Mr. Vuong Dinh Hue also requested that the National Assembly's Finance and Budget Committee conduct a session explaining value-added tax refunds.

Vice Chairman of the National Assembly Tran Quang Phuong concluded the discussion on people's petitions and said: The Standing Committee of the National Assembly assigned the Finance and Budget Committee to supervise or organize a session to explain the VAT refund in August and propose solutions to overcome shortcomings./.