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Vietnam Business » Vietnam Business News » Taxman asked to collect social insurance fees

Taxman asked to collect social insurance fees

Taxation offices should be entrusted as collectors of social insurance fees for laborers from companies as the HCMC Social Insurance Company has been ineffective in doing its job, National Assembly deputies said on Monday.

Only one-fourth of some 137,000 enterprises in HCMC have duly paid social insurance fees for laborers, and the task of collecting this type of fees has proven tough despite the HCMC Social Insurance Company has resorted to lawsuits as the final measure. Many companies have sought to evade this financial obligation by refusing to sign labor contracts with laborers and register such contracts with authorities, said Cao Van Sang, director of the HCMC Social Insurance Company.

"A survey conducted by the HCMC Social Insurance Company at 33 wards in HCMC last year showed that employers signed labor contracts with only 58,000 workers out of the total 112,000. By evading social insurance fees for the remaining half, employers have pocketed huge sums," Sang commented at a working session on Monday with NA deputies of HCMC.

Under such a situation, it is the taxman that does the job the best, said Do Quang Khanh, deputy director of the company. Khanh said that the HCMC Taxation Bureau is collecting taxes from 110,000 enterprises in the city, but just a small proportion of that number did pay social insurance fees.

Under current regulations, laborers will have their monthly wages deducted to make payment to the social insurance company, while employers are legally-bound to pay a bigger part. That will benefit laborers as they can claim monies when they lose jobs or when they retire.

Pham Phuong Thao, chairwoman of the citys Peoples Council and head of the citys delegation of NA deputies, told the working session that the widespread evasion of social insurance was a big worry for both employees and the insurance company.

Thao said she upheld the idea of assigning the collection job to the taxation agency.

In 2009, the HCMC Social Insurance Company collected nearly VND7 trillion, while enterprises still owed VND471 billion. In 2008, the company had collected VND5.7 trillion.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

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