Public bitter over taxable incomes
06/08/2010 - 209 Lượt xem
Under the bill, PIT will be imposed on profits from securities and interest on bank deposits.
Nguyen Phuoc Thanh, Director of the Vietnam Bank for Foreign Trade (Vietcombank) HCM City Branch said that it was illogical to tax interest on deposits. He said that most depositors are low income earners, with no other investment channel.
"If they have to pay PIT on the modest income they receive from interest, they would rather keep their money in pockets than depositing at banks," said Mr Thanh.
Meanwhile, Tran Thanh Binh, Deputy Director General of the Vietnam International Bank (VIB) fears that unreasonable taxation will exhaust capital flow into banks.
He said that banks will have no other choice than to raise interest rates to continue attracting deposits. As the deposit rates increases, banks will have to raise lending interest rates, thus putting a heavier financial burden on enterprises and the greater economy.
Hearing that PIT would be imposed on earnings from securities, Tran Phuc Nhan, an investor at Bao Viet Securities Trading Company said that the Government should encourage securities trading, not to hold back the stock market’s development by taxing securities investors.
"Taxation will keep investors away from trading securities, thus leaving the stock market underdeveloped, which is not what the Ministry of Finance strives for," Mr Nhan said.
However, an official from the HCM City Trading Securities Trading Centre said that in principle, all earnings should be taxed. As Vietnam integrates more deeply into global economics, along with the good things, other developments – like modern taxation schemes – will have to be accepted.
Nguyen Thai Son, Head of the PIT Section under the HCM City Taxation Department acknowledged that current PIT regulations are riddled with shortcomings, including the complicated procedures for tax returns.
He said that he had not received proposals for tax returns for 2005, because the tax payer would rather lose refunds than waste time chasing the pennies.
Source: VNE
