Giving 4 reasons for the need to adjust the family tax deduction, Ms. Thuy analyzed: Firstly, the deduction of 4.4 million VND/month is really no longer suitable for current life, especially in big cities, causing disadvantages for taxpayers. This deduction has been maintained since 2020, while in recent years, many essential goods and services have increased, some items even increasing faster than income increases.
According to the General Statistics Office, compared to 2020, the price of education services increased by 17%, food prices increased by 27% and especially gasoline prices increased by 105%. Many voters shared that if a family has small children and has to hire a babysitter, the salary for the babysitter alone is not less than 5 million VND/month.
If a family has children in school, the cost of education accounts for the majority of the expenditure structure. If there are elderly parents, it is not only the cost of living but also the cost of medicine. Therefore, the current family deduction level does not accurately reflect the actual basic expenditure level of families.
"If we have to wait another 2 years to pass the Personal Income Tax Law as proposed, many people will be in a tight financial situation but still have to pay personal income tax," Ms. Thuy emphasized.
Second, according to Ms. Thuy, is the irrationality in the CPI basket of goods. According to the provisions of the Personal Income Tax Law, when the CPI fluctuates over 20%, the Government submits to the National Assembly Standing Committee for consideration of the family deduction level. Last March, the representative of the Ministry of Finance did not know and did not propose to adjust the family deduction level, because the CPI fluctuation was less than 20%.
Many experts and voters believe that the current Personal Income Tax Law uses the criterion of CPI fluctuation of 20%, which means it must be based on a basket of 720 goods, which is unreasonable, while essential goods, which affect people's spending, only account for about 20%, but waiting to calculate the average price of 720 goods will take a long time, even 6-7 years. This time is too long, does not reflect the fluctuation in spending of people and households, causing disadvantages for people.
Third, the current family deduction regulations are not suitable for a low-middle income country like Vietnam. Most of people's income will be spent on essential goods and services, for example, if the income is 10 million VND/month, the spending on essential goods and services must account for 70%.
According to a survey by the National Economics University, in countries with high incomes, for example about 100 million VND/month, the spending on essential goods and services only accounts for 30%. Therefore, the current regulations on family deductions will directly affect people's spending on essential services.
Fourth, if salaries increase but income tax and family deductions are not adjusted in a timely manner, it will lead to inadequacies. According to the plan, salary reform will be implemented from July 1, 2024. It is expected that the average salary of cadres, civil servants and public employees will increase significantly compared to the present.
“The increase in wages but the income tax and family deduction levels have not been adjusted in time will cause anxiety for workers, because the increase in wages means an increase in taxable income. This lack of timely adjustment will affect the meaning of salary reform,” Ms. Thuy said and recommended that the Government submit the Personal Income Tax Law in October this year, and submit it to the National Assembly for approval in May 2025.”
Source: https://daidoanket.vn/muc-giam-tru-gia-canh-4-4-trieu-dong-nguoi-thang-la-qua-lac-hau-10281032.html
Comment (0)