Proposal to exempt tax on "overtime pay" and "night shift pay"

National Assembly deputies discussed at the Hanoi group on the afternoon of November 5. Photo: Nhu Y

"Practicing saving to be sustainable must be associated with benefits"

According to the draft Law on Practicing Thrift and Combating Wastefulness (amended), delegate Truong Xuan Cu (Hanoi Delegation) said that one of the shortcomings of the current Law is that the scope of regulation is still narrow, mainly focusing on the State sector. Meanwhile, practicing thrift needs to be expanded to the whole society, from state agencies, enterprises, socio -political organizations to each citizen.

Analyzing the practice, delegate Truong Xuan Cu said that the mechanism for monitoring, inspecting and handling violations in the field of thrift and anti-waste is not effective. Many supervisions of the National Assembly are very elaborate, but the implementation after the conclusion is still not strong and not substantial. Therefore, the delegate suggested adding specific regulations, increasing sanctions for leaders when waste occurs, at the same time, having a worthy reward mechanism for units and individuals who perform well.

Delegate Le Quan (Hanoi Delegation) speaks. Photo: Nhu Y

Meanwhile, delegate Le Quan (Hanoi delegation) said that there should be a mechanism to reward and encourage materially for groups and individuals who practice thrift and effectively combat waste. The delegate emphasized that practicing thrift is not only about limiting spending but also about using it effectively, bringing specific benefits to organizations and individuals.

According to the delegate, the current law focuses on inspection, examination, and disciplinary action, while there is no mechanism for rewarding and encouraging groups and individuals with initiatives to save and use resources effectively. Therefore, it is necessary to supplement regulations on reward regimes, increase income, or provide material rewards for initiatives and solutions that help save the budget and effectively combat waste.

“If we want to practice saving sustainably, we must attach it to benefits. Like the previous 10-contract model, if there are no specific benefits, it will be difficult to arouse the proactive spirit of each person,” delegate Le Quan analyzed.

Delegate Le Quan also said that the public service sector is where the reward mechanism needs to be strongly applied, because there is still a lot of potential for saving resources, especially in asset management, human resource use and organizational restructuring.

Help taxpayers feel “proud to contribute to the budget”

Discussing the draft Law on Personal Income Tax (amended), delegate Le Nhat Thanh (Hanoi Delegation) proposed to study and supplement tax exemption regulations for "overtime pay" and "night shift pay", as these are income sources that motivate employees.

Delegate Le Nhat Thanh (Hanoi delegation) speaks. Photo: Trong Phu

According to the delegate, calculating taxes on these amounts will reduce the incentive of bonus policies, exceed labor productivity..., and at the same time, cause disadvantages for workers, especially night shift workers, overtime workers, and manual workers. In addition, for taxable income from inheritance and gifts, it is necessary to clarify the criteria for determining unregistered assets to ensure transparency and avoid arbitrary application.

Regarding the above content, delegate Le Quan suggested that personal income tax must be designed to ensure fairness and create motivation to work and contribute, helping taxpayers feel "proud to contribute to the budget". The delegate said that the current family deduction level is only temporarily acceptable, but there is no mechanism to adjust flexibly according to the basic salary or minimum wage.

Delegate Le Quan proposed to add a regulation assigning the Government to adjust the family deduction level in accordance with the fluctuations in income, prices and people's lives. At the same time, the drafting agency needs to clarify the regulations on income tax exemption for cases of transfer and donation of real estate in family relationships (husband and wife, grandparents - adopted grandchildren, siblings...), to avoid different interpretations that cause difficulties in practice.

In particular, it is necessary to exempt tax on income from overtime and night shifts within the low income range, helping workers reduce the burden of declaration and encourage them to improve their lives.

Delegate Hoang Van Cuong (Hanoi Delegation) speaks. Photo: Trong Phu

Discussing this content, delegate Hoang Van Cuong (Hanoi Delegation) said that it is necessary to adjust tax policies more flexibly, ensuring compliance with fluctuations in income, prices and fairness among tax payer groups. According to the delegate, amending the Law on Personal Income Tax is necessary because in recent times, factors related to prices, income and spending of people have fluctuated strongly.

Delegates agreed with the regulation that the Government decides on the family deduction level based on price and income fluctuations, instead of the rigid regulations in the Law. However, it is necessary to clarify the adjustment principles, including: The deduction level must be consistent with the highest level of price or income fluctuations, so that people are not taxed on the portion of income that should be used for essential expenses.

Regarding the progressive tax schedule, delegates said that reducing the tax rate from 7 levels to 5 levels as in the draft is unreasonable. At the same time, it is proposed to keep the 7 tax levels with each level being 5% apart, because this way "distributes more reasonably, does not eliminate the motivation of workers with increasing income".

Vice Chairwoman of the City People's Council, Deputy Head of the National Assembly Delegation of Hanoi City Pham Thi Thanh Mai speaks. Photo: Nhu Y

Regarding the gold tax policy, delegate Hoang Van Cuong said that the 0.1% tax rate on gold trading is not high but needs to be considered carefully, because gold is a legal asset of the people. When the gold market fluctuates strongly, the flow of money into speculation can increase domestic prices, causing a difference with the world, affecting exchange rates and production and export activities.

Therefore, delegates proposed to stipulate that the Government has the right to temporarily apply gold tax in case of unusual market fluctuations, to stabilize the market, rather than as a regular policy.

Source: https://hanoimoi.vn/de-nghi-mien-thue-tien-lam-them-gio-tien-ca-dem-722243.html