Many NA deputies voiced their opinions at yesterday’s session in Hanoi to discuss amendments to the Law on Personal Income Tax before approving them.

Accordingly, they demanded that the new personal income tax threshold, VND9 million (US$430) a month, be approved by the NA and then applied sooner, on January 1, 2013, for the sake of tax payers. The current tax threshold is only VND4 million per month.

Doan Nguyen Thuy Trang, a deputy of Ho Chi Minh City, said the new tax threshold should be implemented soon to boost consumer spending, which would in turn help reduce unsold inventory and stimulate goods production and trading.

The application of the new threshold will help reduce the negative impact of inflation on the new threshold and will also contribute to the implementation of social security policies, Le Van Hoang of Da Nang City said.

Hoang Huu Phuoc of HCMC said the Government should take measures to remove obstacles to the implementation of the new tax threshold so that it can be applied early next year. 

Meanwhile, another HCMC deputy, Tran Hieu Ngan, demanded that the number of personal income tax rates be reduced from seven levels to six levels, including 5, 10, 15, 20, 25 and 35 percent per month.

Under an amendment to the Law, taxpayers will be allowed to deduct VND3.6 million per month for each dependent they have to take care of, while the current rate is VND1.6 million. Dependents are those who earn less than VND500,000 a month.

However, deputies Phuoc and Trang said the VND3.6 million deduction is not enough to pay expenses related to a dependent, based on the actual cost of living. He suggested that the rate be VND4.5 million per month. 

Nguyen Van Minh, another deputy from HCMC, said the deduction should even be doubled from VND3.6 million to VND7.2 million per dependant in cases in which the dependant is suffering an incurable disease.

As scheduled, the National Assembly will open a plenary discussion session on November 15 to consider and approve the amendments to the Law.

Source:Tuoitrenews