In the comments on the draft revised Law on Personal Income Tax, the People's Committee of Can Tho City said that it is necessary to study and expand the tax base to ensure budget revenue.
Previously, in 2013 and 2017, there were some proposals that if the interest on savings deposits reached hundreds of millions of VND or billions of VND per year, it should be considered an investment channel such as stocks and real estate, so tax should not be exempted.
Just think that taxing savings interest to increase budget revenue is beneficial to the country, but it is necessary to see whether this benefit can compensate for other harms or not.
First of all, the savings interest rate is low, depositors only receive a small interest rate compared to the deposit. In that interest, the " depreciation" due to inflation must also be deducted. If interest is taxed, the depositors will not get much more.
Second, savings are often accumulated from income and those who have been taxed, if you pay tax on savings interest, you will collect another tax.
Third, there are many cases where bank deposits are accumulated from previous deposit interest. Therefore, if savings interest is taxed, it is possible to collect tax many times on one income of the people. This is unfair.
When there is no fairness and the interest rate on savings deposits is taxed, people will certainly not be interested in savings. Many experts predict that if savings interest rates are taxed, many people will withdraw money from banks to invest in other channels.
When people do not deposit savings, the banking system will lack supply, businesses will not have loans from banks, what will happen?
That is, production and business will be affected, affecting the economy. Enterprises invest in projects and need to have loans from banks. If the bank does not have a source of money, it will not be able to meet the loan for businesses.
Not to mention, when banks lack capital to provide to businesses, it will stabilize the financial market.
Enterprises are limited in production and business, cannot implement large investment projects due to lack of capital, then have a negative impact on the whole society. That is the disrupted labor market, many people have lost their jobs. If businesses cannot develop production and business, the state will lack budget revenue.
In contrast to Can Tho city, Ninh Thuan province proposed to continue tax exemption for deposit interest rates, government bonds and long-term investments to encourage savings and support economic development. This is a proposal that is suitable for reality and is very worthy of support.
