(PLO)- Inadequate and unreasonable provisions of the Law on Personal Income Tax need to be corrected as soon as possible in 2023 in order to be applied in 2024, rather than waiting according to the roadmap to timely drill down the people’s strength.
Many opinions agree that it is necessary to correct the shortcomings of personal income tax as soon as possible to match the socio-economic context, income and living standards of the people. Thereby reducing the burden, reducing pressure on taxpayers, especially in the current difficult economic context.
The Government proposes to develop the Personal Income Tax (Amendment) Law (amended) and proposes to include it in the 2025 Law and Ordinance Development Program, submit it to the National Assembly for comments at the 10th session (October 10-2025), and approve it at the 11th session (May-2026).
This route is too long because if the above process is followed, it is expected that it will take up to three years for the PIT Law to be passed.
While the reality is not waiting for the policy. The economy has many fluctuations, outdated and outdated regulations do not correspond to the reality of commodity prices, which will disadvantage taxpayers and erode their wages while this is the main source of income for them to cover their family life every day.
For example, according to the survey on population living standards in 2022 by the General Statistics Office, the per capita income in 2022 is estimated at 4.6 million VND/person/month. This figure is many times higher than the per capita income announced in 2006 when it was only 636,000 VND/person/month. People’s income increased more than seven times in 16 years.
Meanwhile, the Law on Personal Income Tax has been applied since 2007, after twice adjusting the reduction of family circumstances for taxpayers (from 4 million VND/month to 9 million VND/month and 11 million VND/month in 2020), the increase is less than three times.
Not to mention that since 2020, the economy has had many drastic changes, the outbreak of the COVID-19 pandemic, and global inflation have caused commodity prices to rise. Therefore, the inadequate and unreasonable provisions of the Law on Personal Income Tax need to be corrected soon, cannot wait for the roadmap.
Specifically, according to experts, in 2023, the PIT Law needs to be discussed and approved in order to be applied in time for 2024. In case it is not timely, the National Assembly Standing Committee should soon issue a resolution to remove regulations that are not suitable with reality to increase the family deduction for taxpayers.
In addition, the law needs to apply deductions for tuition fees, rent, treatment for critical illnesses, etc. when calculating PIT. As in Malaysia, in addition to the deduction for family circumstances, taxpayers can deduct more than 20 other expenses such as parenting expenses, tuition fees, medical examination and treatment costs for themselves, etc. Or Thai people, when calculating personal income tax, are entitled to a deduction for family circumstances, plus other expenses such as interest on home loan installments, school fees for children, money to buy life insurance…
The reality has proven that the people’s tolerance by rationally adjusting the tax rate in line with reality will help nurture revenue, boost the economy and still increase the budget.