Finance and Trade Ministries to focus on improving business environment
The Ministry of Industry and Trade (MoIT) and Finance Ministry (MoF) have set up action plans to improve the business environment and the national competitive ability for the future.
The Ministry of Finance would shorten tax and social insurance payment times to less than 168 hours a year, focussing on improving the country’s ranking from 167th position to 100th position for the same.
Accordingly, the two ministries will strive to improve the country’s business environment to keep up with the level of top four ASEAN nations such as Indonesia, Malaysia, the Philippines and Thailand.
In addition, the administrative reforms would be based on World Bank’s criteria instead of local targets.
Specifically, the MoIT has planned to shorten the time taken for implementation of administrative procedures. Time taken for giving access to electricity would be less than 35 days, customs clearance would be done in less than 70 hours for exported goods and 90 hours for imported goods, and resolution of contract disputes would take less than 300 days.
In addition, the ministry will establish a system to support start-ups, and create a favourable and stable business environment. It will strive to have one million firms by 2020, including at least 0.5 per cent of start-ups.
Meanwhile, the MoF has targeted to reach the average levels achieved by the ASEAN 4 group in terms of the criteria for the tax refund, risk management in tax check-ups and investigation and time taken for responding to tax claims.
The ministry would also shorten tax and social insurance payment times to less than 168 hours a year, focussing on improving the country’s ranking from 167th position to 100th position for the same, according to the World Bank’s assessment.
It will also try to improve its ranking from 93rd to under 82nd position on border gate transaction.
The ministry has asked the customs offices to enhance the effectiveness of automatic customs clearance towards the national one-stop-shop mechanism.
The customs sector should be active and cooperate with the relevant ministries and sector to review the legal documents to improve administrative procedures to facilitate business operations.
The ministry will also expand e-tax payment for land leasing, car registration, personal income tax and property transfer.