Prime Minister calls on Gov’t to cut business fees

Thursday, Aug 31, 2017 10:16

People pay business taxes at the Dan Phuong Taxation Division, Ha Noi. — VNA/VNS Photo Hoang Hung

Administrative procedures in many ministries, sectors and localities remain complex, causing difficulties for enterprises, said Prime Minister Nguyen Xuan Phuc at the monthly Government meeting on Wednesday.

“Many enterprises reported that it takes great efforts to manufacture products but procedures to consume and export these products are more complicated. Some say that raising chickens takes only 40 days but it is more complicated and takes longer to consume and export chickens,” Phuc said.

It takes a month to get licences from the Drug Administration of Viet Nam or the Department of Medical Device and Construction under the Ministry of Health, causing public concern, he said, urging ministries, sectors and localities to focus next month on addressing administrative procedures, especially lifting fees and taxes from enterprises.

The Government hopes to reduce fees for enterprises this year, however, fees such as Build-Operate-Transfer (BOT) fees remain high, some toll booths are in inappropriate places, and according to statistics, enterprises have to pay 70 types of transport fees, he said.

The PM asked the Ministry of Finance and the Ministry of Transport to look at regulations on BOT fees to create conditions for enterprises to grow.

Inspection fees for imports and exports remain high, he said, adding that up to 35 per cent of good batches have to pay these fees while the goal is to reduce this to 15 per cent.

He also said that social insurance fees for businesses are high. According to the World Bank, Vietnamese enterprises have to pay social insurance fees 12 times per year, with the procedure taking 189 hours in total. Meanwhile, it takes Thailand only 48 hours and Indonesia 46 hours.

Efforts have been made to drastically reform administrative procedures but there has been no change in some sectors and units, he said.

“Ministers must propose specific solutions for each sector to lift difficulties to boost and build social trust, contributing to general development of the economy,” Phuc said.

Viet Nam Pharma licence

Deputy Prime Minister Vu Duc Dam has said that he received a health ministry report about its responsibility in management in the case of pharmaceutical company Viet Nam Pharma being granted a licence to import low-quality cancer treatment drugs.

The violations need to be penalised strictly and management problems must be brought into the light, he said.

Dam proposed that the health ministry’s decision to grant an import licence and drug registration to the company must be inspected in a transparent manner.

PM Phuc ordered the Government Inspectorate to investigate the issue.

This must be carried out seriously, especially as the problem relates to public health, the PM said.

Positive economic signs

Macro-economic date in August was reported to be positive, with inflation controlled with the Consumer Price Index (CPI) increasing by 0.92 per cent. Average CPI of the first eight months increased 3.84 per cent compared to the same period last year. Foreign direct investment increased sharply, exceeding US$23.3 billion.

The number of international tourists also reached its highest ever point in the first eight months of the year, reaching 1.23 million.

Looking back at August’s socio-economic performance, the PM said that if the progress is maintained in the upcoming months, this year’s economic targets will be reached.

The PM also asked Cabinet members to control the on-going dengue fever outbreak. — VNS

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