In particular, the current personal income tax rate table with 7 tax rates from 5% - 35% is no longer suitable. The gap between tax levels is quite narrow, making it easy for workers to fall into a higher tax rate. This happens even if income only increases slightly. This reality is causing difficulties for middle-income workers and directly affecting their career development motivation.
These shortcomings not only increase pressure on employees but also create certain injustices in the tax system. Therefore, it is time to adjust personal income tax policies to better suit reality and ensure social justice.
To ensure that taxpayers are truly able to effectively reduce their economic burden, the family deduction level needs to be adjusted based on the actual living standard to reduce financial pressure, create labor motivation and limit unnecessary disadvantages for those working for hire.
The number of tax levels also needs to be reduced to 4-5 levels, while expanding the gap between tax levels to help reduce pressure on taxpayers and encourage workers to increase their legitimate income.
This adjustment is also in line with the request to review taxes clearly stated by Prime Minister Pham Minh Chinh at the Government meeting on March 8. Accordingly, the tax review is not only to ensure fairness for the people but also in line with the common interests of the economy and balance the benefits with major partners of Vietnam.
Adjusting the tax table and family deduction levels appropriately will help tax policies become transparent, easy to apply and receive high consensus from taxpayers. From the State budget perspective, this adjustment will also bring long-term benefits. When tax policies are reasonable, fair and suitable to reality, people will be motivated to work and contribute more to the economy.
Budget revenue from taxes will be more stable and sustainable, limiting tax evasion or transferring income to informal forms to avoid tax obligations.
Adjusting the family deduction and personal income tax declaration at this time is an urgent need. This is not just a simple economic issue but also a fairness, a driving force to promote sustainable socio-economic development in the long term.
