Overhaul of tax sector boosts operational effectiveness

Overhaul of tax sector boosts operational effectiveness

The tax sector has embarked on a major restructuring and efficiency drive to strengthen service delivery for citizens and businesses.

Under the government's commitment to streamlining state organisational apparatus, the tax sector has been operating under a newly restructured organisational model since March 1.

New tax policies have fostered a healthy, transparent business environment

After more than three months of implementation, the system has quickly stabilised, ensuring the seamless operation of all professional functions, enhancing tax management efficiency, and better serving both businesses and citizens.

Speaking at a workshop on tax sector restructuring on June 2-3 in Bac Giang, Vu Chi Hung, deputy director general of the General Department of Taxation, stated that the new organisational model has taken effect smoothly. Functional responsibilities are no longer overlapping, and implementation has proceeded without disruption.

“The new model simplifies administrative procedures for taxpayers while supporting the application of IT, digital transformation, and the modernisation of the tax sector,” Hung noted.

However, Hung acknowledged that several related legal frameworks, such as the Law on Tax Administration, the Law on Inspection, and the Law on Government Organisation, have undergone revisions during this restructuring period.

Additionally, the rollout of a new two-tier local government model, consisting only of provincial and communal levels, removing the district level as per central government directives, requires further refinement of the tax sector’s functions, responsibilities, and organisational structure.

As a result, the tax authority has restructured from 20 regional tax sub-departments into 34 provincial/municipal tax offices. Likewise, 350 district-level tax teams have been transformed into 350 grassroots tax offices that now operate at the commune level.

According to tax authority leader, a streamlined organisational structure is the critical foundation for implementing the tax system reform strategy.

“The new model must continue to be reviewed and adjusted to meet the requirements of a modern, effective, and efficient tax administration. It should focus on taxpayer facilitation, grounded in a digital tax platform supported by three pillars: modern legal institutions, professional human resources, and advanced IT,” said Hung.

In line with a Party Central Committee resolution, the tax sector has undergone two major rounds of restructuring.

Under the new model, the number of administrative units within the tax sector has been reduced from 4,141 to 3,108, down by around 25 per cent.

This result is a clear demonstration of the tax sector’s commitment and efforts to implement the Party and state’s overarching policy on administrative streamlining and public governance reform.

Mai Xuan Thanh, director general of the General Department of Taxation, noted that this is a major milestone for the sector.

It represents not just a change in structure, but a major shift towards a leaner, more efficient system capable of meeting ever-growing socioeconomic development demands and delivering better service to the public and businesses.

Thanh gave the remark at a tax sector conference in Hanoi this March.

“The sharp reduction in the number of administrative units puts considerable pressure on personnel restructuring, operational processes, workload distribution, and the management of much broader geographic areas,” he said.

To ensure uninterrupted and efficient operation of the new structure, the tax authority leader directed local units to swiftly stabilise their organisations to be able to maintain smooth management and ensure continued public services and administrative procedures during the transition.

At the same time, every tax officer is expected to demonstrate a strong sense of responsibility, proactively adapt to changes, and fulfill their assigned duties with professionalism.

VIR