Proposal not to specifically stipulate the revenue threshold in the law that is not subject to PIT
On April 20, the National Assembly Standing Committee held a meeting to give opinions on the draft Law amending and supplementing a number of articles of the Law on Personal Income Tax (PIT), Law on Value Added Tax (VAT), Law on Corporate Income Tax (CIT) and Law on Special Consumption Tax (SCT).
Presenting the Submission, Minister of Finance Ngo Van Tuan said that it is necessary to continue to study and adjust the revenue threshold that is not subject to PIT for individual business households and the revenue level of households and individual businesses that are not subject to VAT.
Regarding corporate income tax for small-scale enterprises, in fact, recently, due to increased fuel costs and logistics costs, many businesses of this type have fallen into a difficult situation and need policy support from the State.
Regarding the SCT for battery-powered electric vehicles, Minister Ngo Van Tuan said that the current SCT policy with high incentives for battery-powered electric vehicles applied from March 1, 2022 has taken effect.
Minister Ngo Van Tuan clearly stated that, to support households, individual businesses, and enterprises to develop production and business, the draft amended Law does not specifically stipulate the threshold of revenue not subject to PIT, the level of revenue not subject to VAT for households and individual businesses in the Law, and assigns the Government to regulate this level.
At the same time, amend the content of the Corporate Income Tax Law in the direction of supplementing the level of revenue exempted from corporate income tax and assigning the Government to regulate this level as well as detail the tax exemption according to its authority.
The delegation of power to the Government will create a legal basis for the Government to flexibly manage fiscal policy, including tax policy.
Tax policy needs to be designed in the direction of substantive support
Reporting on the appraisal of the draft Law, Chairman of the Economic and Finance Committee Phan Van Mai said that the majority of opinions in the Standing Committee agreed with the scope of amendment of the draft Law as proposed by the Government.
However, it is proposed that the Government comprehensively review tax laws to immediately submit them to the National Assembly at the first session for consideration and decision on amendments in the direction of assigning the Government to regulate contents that frequently fluctuate, contents that have been assigned to the National Assembly Standing Committee to regulate or adjust, ensuring synchronization and uniformity in tax laws.
Some opinions suggest that the process of considering and promulgating the PIT Law and the VAT Law has discussed in detail the contents related to regulations on the threshold for revenue that is not subject to tax.
Therefore, it is proposed that the Government provide a more thorough, thorough, and convincing explanation of the reasons for proposing amendments in the direction of assigning the Government the authority to stipulate the threshold for revenue that is not subject to tax.
Regarding the revenue threshold for tax exemption and reduction for business households and small and medium-sized enterprises, Mr. Phan Van Mai said that the appraisal agency basically agreed with the direction of the amendment, but suggested that it is necessary to continue to carefully consider the specific revenue level.
Previously, the revenue threshold was 100 million VND, the drafting agency proposed raising it to 300 million VND, then adjusting it to 500 million VND.
However, many opinions believe that this level is still low; the Association of Small and Medium Enterprises proposed up to 3 billion VND, while the appraisal agency believes that it should be studied at a minimum level of about 2 billion VND to ensure humanity and suitability with reality.
Mr. Phan Van Mai emphasized that business households and small and medium-sized enterprises not only contribute to the budget but also play a very large role in creating jobs, ensuring social security and maintaining the vitality of the economy.
Therefore, tax policies need to be designed in the direction of substantive support, avoiding small-scale, fragmented adjustments that do not fully reflect the spirit of supporting the development of the private economic sector.
