The Government has yet to submit a decision on tax exemption for personal income to the National Assembly (NA), proposed earlier by the Ministry of Finance.
This was revealed by a spokesperson from the Finance and Budget Committee of NA, who attended a meeting yesterday of the committee and the Ministry of Finance.
Earlier, the Ministry of Finance had submitted to the Government a project to exempt tax for some groups.
It was proposed that tax be exempt for single people who earned VND5million (US$238) per month or less.
The same tax exemption was proposed for those with one dependent member and income of VND6.5million (US$309) and for those with two dependent members and income of VND8.2million (US$390).
The ministry has also proposed personal income tax exemption for dividend incomes (5 percent now) and reduction of 0.1% for securities investment.
However, the spokesperson, who did not want his name revealed, said that the above project faced opposition from some leaders in the Finance and Budget Committee for the two following reasons.
First, personal income tax is applied on average income earners, not high-income earners. Second, cutting tax rates due to inflation is not reasonable because the inflation is just temporary.
According to a leader of the committee, for personal tax exemption to dividend incomes and reduction for stock investors, the best policy would be to boost the stock market.
