10 months collecting more than 92,000 billion VND
The Finance Ministry announced that total state budget revenue from the beginning of the year to the end of September reached VND 975.3 billion, a decrease of 11.5% compared to the same period last year, of which internal revenue reached 812.4 billion VND, a decrease of 8.3%. ; Crude oil revenue is Dong 27.5 billion, down 36.9%; Balanced import and export revenue is 134.550 trillion dong, down 20.1%.
Why do many countries introduce financial support packages because the Covid-19 epidemic applies to both businesses and individuals, whether they are unemployed or not? In the meantime, does Vietnam just run business support packages without paying attention to salaried individuals or employees?
Dr. Le Dat Chi, Vice Dean of Finance (University of Economics, Ho Chi Minh City)
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In the national collection, the total income from personal income tax (PIT) in the last 9 months reached more than 90,114 billion VND, an increase of 5% compared to the same period of 2019. According to the General Bureau of Statistics, the income tax on the income of natural persons as of mid-October at 92,000 million dollars, equivalent to 71.5% of the annual estimate (the PIT estimate for the entire year 2020 is about 128 billion dong).
The representative of the General Directorate of Taxation explained that the amount of the PIT in the first 9 months increased by 5%, but the rate decreased by more than 12% compared to the same period last year. There are many reasons why the PIT increased and decreased erratically this year, such as January and February, it was fine, but until March it was affected by Covid-19, the social gap, so the income also decreased. For example, the average tax income from wages and salaries is about 7,000 – 8,000 billion VND / month, but in August alone, it has decreased by more than 30%, down to 4,100 – 4,200 billion VND due to the decrease in taxpayers’ income; starting in July to apply a new family deduction (increased to 11 million / month for taxpayers and 4.4 million / month for dependents – PV) …
However, the final figure shows that personal income tax collection continues to increase. In explaining this, the representative of the tax industry explained that there are 10 items of the PIT, in addition to wages and salaries (which represent more than 70% of the total income of the PIT), there are other items such as income from production and commercial activities, and securities, real estate, capital investment, winning prizes, gifts … In which, income from wages and salaries and family and individual businesses decreased, reaching only more than 93% compared to the same period last year. By implementing family family deductions according to the new tariffs, the amount of the PIT is reduced by several trillion dong. However, in return, income from the transfer of real estate, securities and capital investments has increased, thus partially offsetting the shortage of wages and salaries.
Income from personal income tax since the beginning of the year continues to increase
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Income decreased, unemployment increased
Total PIT earnings continue to rise, in stark contrast to reported data on employment and employment status. Specifically, the General Statistics Office said that as of September, the country had 31.8 million people aged 15 and over who were negatively affected by the Covid-19 epidemic, including those who lost their jobs, had to leave their jobs. jobs or fell. working hours, income reduction …
Attorney Truong Thanh Duc, president and member of the Basico Law Firm, emphasized that in the economy, two main contributors are businesses and individual employees. While a number of business support policies were issued just after the Covid-19 translation occurred and while it may not be as effective as expected, it is not suitable for a number of topics … but not nevertheless. In particular, people who are also taxpayers must pay in full each month and each quarter without delaying the payment or reduction of taxes. But in the current context, stimulating consumer demand is the most important thing because it stimulates production and business, so that companies can have more vitality. For this reason, the lawyer Truong Thanh Duc proposed to consider reducing personal income tax by 50% for taxpayers throughout the year 2020 or at least a reduction of 30%, equal to the announced personal income tax reduction policy.
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Of which 68.9% of people have low income (with a slight decrease in income), almost 40% have to reduce working hours or take shifts, and around 14.0% have to take a job. rest or stop working. joint. The services sector was the most affected by the Covid-19 epidemic with 68.9% of workers affected; followed by the industry and construction sector with 66.4% of affected workers; The rate of affected workers in the agricultural, forestry and fishing sectors is 27.0%. The number of unemployed of working age in 9 months this year is almost 1.2 million people, increasing by 132,100 people compared to the same period last year. The unemployment rate at working age is 2.48%, 1.14 times higher than the same period last year …
The question is, why not lower the PIT for people? According to the representative of the General Directorate of Taxation, those who have incomes of less than 20 million VND / month and have 2 children do not pay almost any PIT. The rest of people with high incomes, can contribute, also share with the current budget.
“Countries have different tax calculation mechanisms. For countries that collect taxes from the first income, to stimulate consumption they can reduce taxes. As for Vietnam, the family can enjoy family allowances for taxpayers and dependents. If there are 2 dependents, the income is less than 20 million VND / month, without taxes, ”he said.
Mr. Nguyen Ngoc Tu, former editor-in-chief of Tax Magazine, still holds the view that the PIT should be exempted for 3-6 months to create motivation and momentum for employees, as well as to stimulate consumer demand. Because if many people have a psychology of contraction, they limit spending as at present, it is difficult to promote the consumption of goods and services.
It’s not fair to taxpayers
In fact, the increase in family allowances for taxpayers since the beginning of July is in line with the fiscal adjustment calendar and the new fiscal threshold has been analyzed and outdated since the date of issue. The amount of PIT for many people is reduced but not significantly because the tax grades are too thick and the tax rate is high. In reality, taxpayers were neglected in the government’s supportive policies when the Covid-19 epidemic broke out.
Dr. Le Dat Chi, Deputy Director of the Faculty of Finance (Ho Chi Minh City University of Economics), raised the question: Why do many countries offer financial support packages because the Covid-19 translation applies to companies (companies) and people, unemployed or not; Meanwhile, Vietnam only applies support packages to companies without paying attention to salaried individuals or employees? While this is a year-round group of subjects, they still diligently pay taxes to the state budget, but are not supported when a natural disaster strikes. Therefore, fiscal policy is not fair between taxpayers. The government reduces 30% of corporate income tax for companies so that units have more capital to reinvest, to increase spending, they should also have a similar policy so that people have more cash, increase spending for themselves . family. When people increase spending, companies can sell goods, increase production, and the government also collects the value added tax.
Dr Le Dat Chi analyzed, to create a recovery momentum to promote growth in the fourth quarter of 2020 and build momentum for the economy next year, the Government should reconsider the PIT policy for the people. The reduction of taxes will stimulate domestic consumption and, therefore, will also contribute to supporting production and service companies …
