Ministry will not cut income tax: confirmation
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The Finance Ministry has no plan to amend the Law on Personal Income Tax to raise the taxable income threshold to ease the strain amid inflation, confirmed Chief of the Ministry Office Nguyen Duc Chi.
He made the confirmation with VnExpress yesterday amidst some media sources saying that the ministry has proposed amending the law to raise the starting taxable income rate to VND10 million (US$480.7) from VND4 million ($192.3).
“The ministry has neither made a proposal nor released any information related to amending the law,” he said.
He also asserted that the program for amending a number of laws in 2011 does not involve the amendment of the personal income tax law.
However, he said, the ministry will continue collecting opinions related to the law so that it can consider amending it if necessary.
"For the time being, I affirm that there is no plan to change the law [personal income tax],” he said.
Meanwhile, recent public opinion said that the taxable income rates in the law are too obsolete compared to the current situation and need to be amended.
The prices of many commodities and services have soared sharply after the rises in prices of petrol and electricity.
Meanwhile, the starting taxable income rate remains unchanged, which puts a big burden on taxpayers, as the purchasing power of their income has dropped due to the price hike.
Among the number of specialists and lawyers who have proposed the law be changed, economic expert Pham Lan Chi said the starting taxable income rate should be tenfold the minimum salary, which now ranges from VND830,000 (US$40) to VND1,550,000 ($74.5), depending on where taxpayers are living and working.
