Specific and clear regulations on wasteful behavior

Presenting the Report on the review of the draft Law on Thrift and Waste Prevention, Chairman of the Economic and Financial Committee Phan Van Mai emphasized that clearly and specifically regulating wasteful behavior and violations in the organization of waste prevention and control will increase the transparency and feasibility of the Law; creating a legal basis for building internal regulations, control mechanisms and sanctions.

On the morning of November 4, the National Assembly worked at the Hall, listening to the Presentation and Report on the review of the draft Law on Personal Income Tax (amended) and the draft Law on Thrift and Anti-Waste.

B ensures fairness for taxpayers across income groups

The draft Law on Personal Income Tax (amended) was presented by Minister of Finance Nguyen Van Thang and stated that the draft Law has adjusted the progressive tax schedule applicable to resident individuals with income from salaries and wages in the direction of reducing the number of tax rates from 7 to 5 and widening the gap between the rates.

Minister of Finance Nguyen Van Thang presents the draft Law on Personal Income Tax (amended). Photo: Quang Khanh

During the process of drafting the Law, in the documents sent to collect comments from Ministries, branches, localities, National Assembly Delegations and related organizations and individuals, the drafting agency proposed 2 options on the Tax Schedule.

Option 1: Amend the Tax Schedule to 5 levels with the distance between levels being 10, 20, 20, 30 million VND respectively, 5 levels corresponding to tax rates of 5%, 15%, 25%, 30%, 35% and the final tax rate is 35% applied to taxable income over 80 million VND/month.

According to calculations, along with the adjustment of the new family deduction level, this Tax Schedule adjustment plan will reduce revenue by about 26,400 billion VND/year.

Delegates at the meeting. Photo: Quang Khanh

Option 2: Amend the Tax Schedule to 5 levels with the distance between levels increasing gradually to 10, 20, 30, 40 million VND and the tax rates are similar to Option 1: 5%, 15%, 25%, 30%, 35%, the last tax rate level is 35% applied to taxable income over 100 million VND/month.

According to calculations, along with the adjustment of the new family deduction level, this Tax Schedule adjustment plan will reduce revenue by about 27,400 billion VND/year.

Through synthesizing the participating opinions, the majority of opinions agreed with Option 2 and the Government submitted to the National Assembly according to the above Option 2. According to this Option, the mobilization rate of most tax levels will be reduced compared to the current level.

Delegates attending the meeting. Photo: Quang Khanh

“However, based on the review opinions and discussions in the Group and Hall of the National Assembly Deputies, the Government will conduct a comprehensive study and make additional, thorough assessments to ensure reasonableness and report to the National Assembly for consideration,” the Minister of Finance emphasized.

The review report of the draft Law on Personal Income Tax (amended) presented by Chairman of the Economic and Financial Committee Phan Van Mai, the draft Law supplements the provisions on income from gold bar transfers to taxable income. Many opinions suggested that the imposition of tax on gold bar transfers should be considered properly to avoid inconveniences for people who transfer gold for non-speculative or business purposes; taxing people's gold savings may not have humanistic, social and economic management significance; at the same time, it is requested that the Government provide information on the expected time of application of these regulations.

Chairman of the Economic and Financial Committee Phan Van Mai presents the Report on the review of the draft Law on Personal Income Tax (amended). Photo: Quang Khanh

Regarding the progressive tax schedule, many opinions are concerned about the reasonableness of the plan to adjust the income thresholds and corresponding tax rates in the Tax Schedule because some taxable income ranges of the draft Law create a greater personal income tax burden for taxpayers while most other taxable income ranges create lower tax obligations than the current Law. This does not ensure fairness for taxpayers among income groups.

Emphasize the responsibility of heads of agencies and organizations

According to the Draft Law on Thrift and Anti-Waste presented by Minister of Finance Nguyen Van Thang, the draft Law specifically stipulates 7 groups of rights and responsibilities of heads of agencies and organizations and 6 groups of rights and responsibilities of cadres, civil servants and public employees in the State sector.

Minister of Finance Nguyen Van Thang presents the Draft Law on Thrift and Anti-Waste. Photo: Quang Khanh

In particular, it is emphasized that the head of an agency or organization must take personal responsibility in case of failure to implement or improper implementation of legal regulations on waste prevention and control or allowing acts of waste to occur within the scope of the agency, organization and assigned management field.

For example: not issuing, delaying issuance or not organizing the implementation of programs and plans for saving and fighting waste within the scope of the agency, organization and field assigned for management; not issuing, delaying issuance or issuing illegal documents, causing waste; not reporting or delaying reporting, reporting incomplete information according to regulations and requirements of competent state agencies...

The report on the review of the draft Law on Thrift and Waste Prevention was presented by Chairman of the Economic and Financial Committee Phan Van Mai. Accordingly, the Committee believes that wasteful behavior and violations in the organization of waste prevention and control are important contents of the Law on Thrift and Waste Prevention.

Chairman of the Economic and Financial Committee Phan Van Mai presents the Report on the review of the draft Law on Thrift and Anti-Waste. Photo: Quang Khanh

“Specifying and clearly defining wasteful behavior and violations in the organization of waste prevention and control will increase the transparency and feasibility of the Law; clearly identify wasteful behavior and violations; create a legal basis for building internal regulations, control mechanisms, and sanctions; promote prevention instead of dealing with consequences; increase people's trust in waste prevention and control work, strengthen public discipline; and make it easy for officials and civil servants to understand and comply,” the Chairman of the Economic and Financial Committee emphasized.

The Economic and Financial Committee only stipulates a framework, with principles, on groups of wasteful behaviors and groups of violations in the organization of waste prevention and control (violations of procedures and responsibilities when implementing waste prevention and control work, which do not directly cause waste, but reduce the effectiveness of prevention and control).

Delegates attending the meeting. Photo: Quang Khanh

However, it is recommended that the drafting agency study and inherit the provisions that are still valid in Chapter II of the current Law on Practicing Thrift and Combating Wastefulness, institutionalize the Party's policies and guidelines in the new situation and perfect wasteful behavior in the direction of regulating behaviors that directly cause waste in resource management and use by field groups, associated with management standards such as norms, standards, and procedures.

Source: https://daibieunhandan.vn/quy-dinh-cu-the-ro-rang-hanh-vi-lang-phi-10394284.html