Proposal to reduce land use deductions by region and area
On the afternoon of November 19, the National Assembly discussed the draft revised Law on Personal Income Tax (PIT).
Delegate Hoang Van Cuong (Hanoi Delegation) said that previously, the progressive table of personal income tax had 7 levels, but the current draft law has decreased to 5 levels. This 5-level reduction has an advantage, it will be convenient, easy to manage, easy to calculate. However, it is inadequate, the difference between levels is very large.
The delegate gave an example, the lowest rate is the 5% tax rate, applied from 10 million VND; but by the second rate of 11 million VND/month or more, the tax rate has increased to 15%, creating a difference. The highest tax rate of 35% previously only applied to income of 80 million VND, but in this draft law, 100 million will apply a tax rate of 35%.
While our average adjustment for family deductions increased by 1.4 times. This is not appropriate. The delegate suggested reconsidering the tax levels and maintaining 7 levels and each level at a distance of 5% to spread evenly and not create great pressure on the tax burden.
Delegate Tran Kim Yen (HCMC Delegation) said that it is necessary to consider adjusting family deductions by region and area. Currently, the cost of living between urban areas, between urban areas and rural areas, in remote areas, there is a very clear difference.
The goal of this law amendment is an important opportunity for us to solve problems and move towards a fair, humane tax system that is suitable for the socio-economic situation.
If we do not consider and study this issue because of difficulties and complexities, it will not be in line with the goals we have set, said the delegate.
The delegate also proposed to consider exempting or reducing personal income tax for couples who have given birth to two or more children at an appropriate rate.
According to the delegate, this is an important solution to respond to the rapid aging population.
Proposal to reduce home loan interest except for personal income tax
Delegate Le Thi Song An (Tay Ninh Delegation) proposed to add the items deducted from calculating personal income tax, interest expenses paid to credit institutions when people buy the first and only social housing or commercial house.
According to the delegate, for young people and middle-income households, owning a house must largely rely on bank loans. If home loan interest is reduced except for personal income tax, this will be a practical support policy to help them reduce their financial burden and soon stabilize their housing and life.
In fact, social housing funds are still limited, not everyone has the opportunity to access preferential loans. Therefore, not considering deducting interest costs for buyers of social housing or first homes is not fair.
Moreover, we are gradually integrating data on housing and land into the national electronic identification system, allowing authorities to easily identify individuals who are eligible to buy a house for the first time or do not own real estate.
The application of this deduction policy is completely feasible if accompanied by an appropriate control mechanism.
