Tax officials provide online assistance to taxpayers. — VNA/VNS Photo

HÀ NỘI — The Vietnamese Government’s aggressive pursuit of tax debt through travel bans has sparked a heated debate, pitting the need for revenue collection against the potential harm to businesses and individuals.

Since 2023, the General Department of Taxation has issued nearly 23,800 travel bans to businesses and individuals owing over VNĐ50 trillion (US$2 billion) in taxes, successfully recovering VNĐ2 trillion ($80 million).

"I was shocked to learn that I owed so much in back taxes," said Trần Thị Huế, a Hà Nội taxpayer. "I had no idea that I was supposed to pay additional taxes on my second job."

Huế reported receiving notices of substantial tax debts only upon arriving at the airport, leaving her stranded and unable to board her flights.

She learned the hard way that having multiple jobs could lead to unexpected tax bills. She has now settled her tax debts to have her travel ban lifted.

While the measure has proved effective, critics argue that a blanket ban on travel could have unintended consequences.

Nguyễn Ngọc Tú, a lecturer from the Hà Nội University of Business and Technology, argues that the reasons behind tax debts are multifaceted and do not necessarily indicate a deliberate attempt to evade taxes.

He thus advocates for a more nuanced approach to addressing tax non-compliance, noting that blanket measures such as travel bans might be unfair and counterproductive.

"Imposing a travel ban can damage taxpayers' reputation, hinder their business operations, and ultimately make it harder for them to pay off their tax debts," said Tú.

Expert Nguyễn Lý Trường An shares Tú's views, arguing that such a one-size-fits-all approach can have a detrimental effect on businesses, particularly in the current economic climate.

He advocates for open dialogues between tax authorities and businesses, where the latter explain their situations and propose repayment plans, suggesting travel bans only be imposed as a last resort.

According to lawyer Trần Xoa, the issue lies in the inefficient delivery of tax notices. While taxpayers must provide their contact details, these often become outdated after a few years, making it difficult for tax authorities to reach them.

As a result, many taxpayers are unaware of their outstanding tax liabilities until they attempt to travel abroad.

The lawyer calls on taxpayers to regularly check their tax obligations through online platforms such as the General Department of Taxation's portal and the E-tax mobile app to avoid being in arrears.

Other experts suggest 'debt thresholds' to determine which taxpayers are subject to travel bans, avoiding a one-size-fits-all approach. They argue that imposing travel bans on individuals with insignificant tax debts can create unnecessary hardships.

Their voice has been heard, with a General Department of Taxation representative confirming that travel bans will not be applied broadly, but only to taxpayers with significant and long-standing tax debts, especially those who have persistently refused to pay.

She reveals that the tax agency will focus on imposing travel bans on taxpayers who have ceased operations at their registered addresses without notifying the tax authorities, leaving outstanding tax liabilities.

Regarding taxpayers' confusion about who would be subject to travel bans among a company's legal representatives, owners and shareholders, the representative says the tax agency will decide on it on a case-by-case basis.

She also shares that the tax agency will review and revise relevant laws to ensure fairness and support for taxpayers in hardship. — VNS