Is the new 20% CPI fluctuation regulation to adjust the personal income tax rate reasonable?
In Report No. 76/CQLG-THPTDB dated April 8, 2013 of the Price Management Department (Ministry of Finance), market price statistics in March 2013 are as follows: In the North, the price of ordinary rice usually fluctuates at 6,000 - 8,500 VND /kg. In the South, rice prices are at 5,000-5,875 VND/kg, down 125 VND/kg. Prices of some vegetables, tubers and fruits: Cabbage 8,000-9,500 VND/kg; potatoes 12,000-13,000 VND/kg; tomatoes 12,000-13,000 VND/kg. The price of some seafood products such as carp is 70,000-75,000 VND/kg.
After 10 years, in Report No. 164/CQLG-CSTH dated April 26, 2023, the commodity market report for March 2023 showed that the average price of plain rice was at 12,200 VND/kg, equivalent to an increase of 43% compared to the previous year. 2013. Carp price is 80,700 VND/kg. Cabbage has an average price of 14,100 VND/kg.
10 years ago was also the time when the family deduction level specified in the Personal Income Tax Law (PIT) was first amended. Accordingly, from July 1, 2013, the deduction for taxpayers is 9 million VND/month (108 million VND/year); The deduction for each dependent is 3.6 million VND/month.
By the 2020 tax period, the family deduction level for taxpayers continues to be adjusted, to 11 million VND/month (132 million VND/year); The deduction for each dependent is 4.4 million VND/month.
Since taking effect in 2009, the family deduction level has been adjusted twice to suit the actual situation.
According to Associate Professor, Dr. Pham The Anh - Head of the Department of Economics, National Economics University, one of the most frequently mentioned shortcomings is the family allowance deduction. "The law stipulates that when the inflation level increases to 20%, the family allowance will be adjusted, but it is clear that when applied in practice, many problems arise" - Associate Professor, Dr. Pham The Anh said. In fact, some basic goods during the period 2013-2020 increased 2-3 times, not 20%. Furthermore, experts say that, assuming inflation remains around 15-17% for a long time, adjustment is not feasible, but from a consumer perspective, households will suffer.
Talking to Lao Dong, Associate Professor, Dr. Dinh Trong Thinh - lecturer at the Academy of Finance - even commented that the regulation that only when the CPI fluctuates above 20% can we consider adjusting the taxable income level is unreasonable. .
He said that people's lives are improving day by day, especially people in large cities. This year's 5% inflation is different from next year's 5% inflation, not in the same pattern. Therefore, there is no need to set a ceiling of 20%.
With salary increase, people are both happy and worried
Sharing with taxpayers, Dr. Nguyen Ngoc Tu - Tax expert, lecturer at Hanoi University of Business and Technology - said, for people in big cities like Hanoi or Ho Chi Minh City, Living costs are very expensive. Even the income is not enough to live.
Sharing the same opinion, Mr. The Anh also commented that people's income only needs to improve a little to fall into the new tax category, up to a peak of 35%, which is a very high level compared to middle-income countries. .
Or as Mr. Thinh for example, this year the regional salary and base salary increased, making people more excited, however, a series of individuals who previously had an income of about 8-9 million VND/month, after salary, Increased income will be subject to tax. Therefore, when income increases, I am both happy and worried.
As shared with Lao Dong, Pham Thi My (Ha Dong) - a teacher at a private high school in Hanoi - said that currently, America's monthly income fluctuates around 30 million VND, this is the level Actual receipt after deducting monthly personal income tax.
Because she's young, she takes on as many lessons as possible. In addition, she's also a homeroom teacher and participates in organizing extracurricular activities... so she earns a bit more than other teachers. However, the above income level is still not enough for America to cover all family expenses, such as medical examination, boarding fees for the couple, and money to support their parents.
"My husband and I ambitiously want to buy a house in Hanoi to settle down, but currently my husband is in debt, most of the family's expenses depend on my salary. My father is seriously ill, so every month I still send money for medicine to my father. In addition, I am receiving treatment so I want to have a baby in 2024" - My confided.
