On the morning of April 23, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Personal Income Tax, the Law on Value Added Tax (VAT), the Law on Corporate Income Tax and the Law on Special Consumption Tax.
At the end of the discussion session, Minister of Finance Ngo Van Tuan explained and clarified some issues raised by National Assembly deputies.
The Minister affirmed that the drafting agency has received delegates' opinions, drafted the draft decree and sent it to the Ministry of Justice for appraisal, ensuring that immediately after the law is promulgated, the Government will urgently issue guiding documents to soon put them into practice.
Regarding the tax-exempt revenue threshold that many delegates are interested in, the Minister affirmed that the drafting agency has carefully considered many aspects, in many aspects, and fully calculated the impact on budget revenue and taxpayers.
The drafting agency assesses that the threshold of 1 billion VND is harmonious with current conditions and the draft law also adopts the direction of assigning the Government to stipulate specific thresholds, based on closely following socio-economic developments, ensuring the principle of harmonious interests and shared risks.
This level of 1 billion VND is double the current threshold (500 million VND), with a total impact of reducing budget revenue by about 7,000 billion VND. In which, for households and individual businesses, the exemption level of up to 1 billion VND reduces revenue by about 4,800 billion VND. For small businesses, (about 250,000 businesses), the budget revenue reduction level is about 2,100 billion VND," the Minister analyzed and said that he will consider very carefully and calculate more to report to the National Assembly the specific level.
The Minister also said that the second point is that National Assembly deputies are very interested in tax collection management. The tax law must be designed to ensure neutrality and efficiency.
In which, the effectiveness is to ensure the lowest collection costs and the lowest compliance costs for taxpayers. Due to considering many aspects, the Government has just set a revenue level of 1 billion VND.
Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Thi Hong said that, through summarizing the discussion opinions, the opinions basically agreed with assigning the Government to stipulate the threshold for revenue not subject to tax, in accordance with the fluctuations according to the socio-economic situation, especially in the context of many difficult factors.
Thereby creating a legal basis for the Government to proactively and flexibly issue and adjust tax policies in accordance with reality, meeting the requirements of direction and administration to implement goals and tasks, especially the goal of high economic growth, associated with macroeconomic stability.
However, some delegates suggested stipulating a rigid framework on revenue thresholds right in the law or establishing specific principles and criteria associated with per capita income, living standards of residents or consumer price indexes... so that the Government has a basis for operating transparently, and can forecast within this framework.
The Government is entrusted with the right to stipulate specific revenue thresholds for each period.
Regarding the threshold for revenue not subject to tax, the Vice Chairman of the National Assembly said that this is a content that many delegates are interested in. The delegate suggested that the threshold for taxable revenue needs to be carefully calculated based on a full impact assessment, ensuring compliance with reality, thereby supporting the development of business households and small and medium-sized enterprises.
