VietNamNet
Bridge – People have fallen back into
despair after they realized that the draft personal income tax (PIT) law
submitted by the Ministry of Finance (MOF) to the government, was nearly the
same as the draft opened for public opinions some months ago.
Dr Le
Dang Doanh, former Head of the Central Institute for Economic Management CIEM,
said on Tuoi tre that the suggestions on setting up higher rebates for tax
payers and independent family members has been ignored, which shows that MOF
still tries to impose its viewpoint on people and tax payers.
Doanh
said the inflation rate has reached 40 percent since 2009, which means that the
actual income of people has decreased seriously. Therefore, tax payers have
every reason to make complaints when they are overtaxed.
Lawyer
Tran Xoa, Director of Minh Dang Quang Law Firm, has confirmed that the draft
law submitted by MOF does not contain any considerable changes in comparison
with the version made public before.
The
most noteworthy things of the draft law are the rebate increase for tax payers
from 4 million dong currently to 6 million dong, the rebate increase for
independent family members to 2.4 million dong, and the removal of the tax rate
of 35 percent.
Xoa
said that though MOF invited people to make suggestions to the draft law, it
did not listen to the public’s opinions.
Le
Khanh Lam, Deputy General Director of DTL auditing firm, said that MOF should
not only strive to collect as much in tax as possible, while it should design
the law in a way so as to obtain three goals at the same time 1) ensuring the
good life for tax payers 2) ensuring the easy implementation of the law and 3)
ensuring the sufficient tax collection to the state budget.
People
have expressed their despair when hearing about the new version of the draft
PIT law. Dai Doan Ket has quoted Nguyen Van Ngoc, a worker of Van Lang Company
in Ha Dong district, said that the new taxation threshold of 6 million dong
would be “out of date” if it would only be applied as of 2014.
“MOF
should consider the possible inflation rates for the next two years while the
State should give support to tax payers. Six million dong would be not enough
for a worker to ensure their basic needs by 2014, if the double digit inflation
rate tendency continues,” he said.
Nguyen
Thi Hien, an accountant of Company No. 29 belonging to the Ministry of National
Defense, also said that the new taxation threshold at 6 million dong is
unreasonable.
Hien
said that the current average income of the company’s 200 workers is 5 million
dong, which is just enough to cover the basic needs. Therefore, she believes
that the new taxation threshold should be applied right from 2012.
The
MOF’s draft PIT Law was not welcomed by associations, enterprises and
independent economists as well, according to local business newspapers.
However,
MOF has been insisting on its viewpoint, saying that the tax rates have been
defined after thoroughly considering the conditions.
A high
ranking official of the ministry said the rebate levels suggested by MOF are
suitable to the GDP growth rates and the society’s income increases by 2014 and
the next years, affirming that the taxation thresholds would not put
difficulties for tax payers.
Also
according to the ministry the taxation threshold of 6 million dong is equal to
1.7 times of the average GDP per capita by 2014, and 3.6 times higher than the
minimum wage in the society by that time.
PIT is
considered a kind of tax imposed on high income earners. However, in fact, a
lot of high income earners do not have to pay this kind of tax, because no one
can control their income. PIT has been mostly imposed on employers, whose
income is clearly shown on the payrolls.
C. V
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