Approval of the Resolution on Central Budget Allocation 2013

On the morning of November 15, National Assembly deputies worked at the Hall, passed: Resolution on allocation of the Central budget in 2013, Resolution on the National Assembly's Supervisory Program in 2013 and discussed the draft Law amending and supplementing a number of articles of the Law on Personal Income Tax.

Approving the Resolution on Central budget allocation in 2013

With the majority of votes in favor, the National Assembly voted to pass the Resolution on the allocation of the central budget in 2013. Accordingly, the total revenue of the central budget balance is 519,836 billion VND; the total revenue of the local budget balance is 296,164 billion VND; the total expenditure of the central budget balance is 681,836 billion VND, including 193,595 billion VND of additional balance and targeted supplement from the central budget to the local budget.

The Resolution clearly assigns the Government to deploy the assignment of State budget revenue and expenditure tasks and the allocation of the central budget to each ministry, branch, central agency and each province and centrally run city in accordance with regulations. The Government directs the People's Committees of provinces and centrally run cities to submit to the People's Councils of the same level to decide on the State budget revenue estimates in the locality, the local budget expenditure estimates, and decide on the allocation of the budget estimates according to their authority, in accordance with the provisions of law...

Will monitor the implementation of policies and laws on health insurance.
The Resolution on the National Assembly's Supervisory Program for 2013 was approved by the majority of delegates. The Resolution stated that at the 5th session, the National Assembly will conduct supreme supervision on contents such as reviewing the Government's supplementary report on the assessment of the results of the implementation of the socio-economic development plan and the State budget in 2012; the implementation of the socio-economic development plan and the State budget in the first months of 2013 and other reports of relevant agencies as prescribed by law.

The National Assembly reviewed the Report on the results of monitoring the settlement of voters' petitions sent to the 4th session of the National Assembly; conducted question and answer activities; and conducted thematic monitoring of the implementation of the Law on practicing thrift and combating waste in the use of government bond capital for capital construction investment, period 2006-2012.

At the 6th session, the National Assembly conducted supreme supervision of contents such as reviewing the Government's reports on the implementation of the socio-economic development plan and the State budget estimate for 2013; work reports of the National Assembly agencies, the Government, the Supreme People's Court, the Supreme People's Procuracy and other reports of relevant agencies as prescribed by law; reviewing the Report on the results of supervision of the settlement of voters' petitions sent to the 5th session of the National Assembly; conducting questioning and answering activities of National Assembly deputies; thematic supervision of the implementation of policies and laws on health insurance, period 2009-2012.

Approve of increasing family deductions for taxpayers and dependents

During the remaining time of the morning session, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Personal Income Tax.

Comments on the Law on Personal Income Tax have created an important legal framework for the implementation of citizens' financial rights and obligations, mobilizing resources for the State budget, and contributing to the reasonable regulation of income among the population. However, after more than three years of implementation, along with the operation and changes in the socio-economic situation, some provisions of the Law have revealed limitations and are not suitable to the new situation, especially the level of mobilization from people's income.

The current law does not cover all the issues arising in practice; some procedural regulations do not facilitate taxpayers. This amendment and supplement contributes to overcoming limitations, establishing a complete and synchronous legal framework, facilitating the implementation process.

Discussing the scope of amendments and supplements to the draft law, many opinions basically agreed with the Government's Submission that only six articles related to three important issues should be considered for amendments and supplements: family deduction level, scope of taxable subjects, tax calculation period and tax finalization.

Delegate Nguyen Lam Thanh (Lang Son) proposed to add Article 5 to tax payers who are technology experts and software experts in high-tech zones and software technology zones to be considered for tax exemption and reduction. The delegate analyzed that science and technology play a decisive role in the country's industrialization and modernization; in which, high-tech zones and software technology zones play a core role and need to have policies to encourage and attract human resources.

The draft Law on Science and Technology also has provisions on preferential treatment policies for scientists and technology experts. According to delegates, tax reduction for these subjects will attract workers to nurture their income and attract workers, especially young workers. At the same time, tax reduction demonstrates the attention and priority policies of the Party, State and society.

The delegates proposed two options: Option 1: The Government should guide this. Option 2 is to specifically stipulate the exemption and reduction level from 3-5% corresponding to the tax rate table at each corresponding level.

Many opinions at the discussion session agreed with the family deduction level as stipulated in the Draft Law, raising the family deduction level for the taxpayer himself from 4 million VND/month to 9 million VND/month; the deduction level for each dependent from 1.6 million VND/month to 3.6 million VND/month. Many opinions assessed that this adjustment meets the GDP growth rate until 2014 and the following years; reduces the rate of tax and fee mobilization on GDP; increases resources for the increasingly high costs of health, education, and culture; contributes to stimulating demand and encouraging consumption; implements the policy of nurturing revenue sources....

On the basis of agreeing with the draft Law, delegate Cao Si Kiem (Thai Binh) said that this adjustment level is relatively reasonable because it compensates for the difficulties of employees and wage earners who have suffered from inflation. The delegate suggested that the Government, in implementing the law, should create other social security measures and policies to ensure income; have measures to manage and check the effectiveness of personal income of people with income...

Delegate Chu Duc Quang (Lang Son) analyzed that due to the impact of the financial crisis and global recession, Vietnam's socio-economic situation has faced many difficulties, prices of many goods and services have increased, affecting people's lives. According to the delegate, the amendment aims to meet the requirements of administrative procedure reform, ensuring administrative simplification to facilitate taxpayers and tax management.

Delegate Chu Duc Quang said that the family deduction level in the draft Law shows the State's sharing with the people and ensures the stability of the law in the long term. In case the consumer price index fluctuates more than 20%, it should be assigned to the Government to regulate to ensure proactiveness, speed, conformity with administrative procedure reform and policy simplification....

However, some opinions believe that increasing the family deduction level as in the draft law is unreasonable, distorting the nature of personal income tax and turning personal income tax into a high income tax; at the same time, narrowing the scope of taxpayers, affecting budget revenue and not ensuring the goal of regulation and social justice. Some opinions suggest that it is necessary to have an assessment of the socio-economic impact when applying this law.

Discussing the time when the Law takes effect, many opinions agreed with the Government's proposal on the time when the Law takes effect (from July 1, 2013) to ensure the necessary time for the Government to develop and issue documents guiding the implementation of the Law./.

According to (TTXVN)-LT