Voters unanimously propose to increase family deduction to 15-18 million VND/month

According to voters, the price increase and the family deduction of 11 million VND are not suitable, it should be raised to a maximum of 18 million VND/month - Photo: PHUONG QUYEN

Prices increase, proposal to raise family deduction to 18 million VND/month

The National Assembly delegations of Hanoi, Ho Chi Minh City, Vinh Long and Tra Vinh provinces have just sent a document to the National Assembly's Petition Committee stating voters' recommendations on raising the family deduction level.

Specifically, voters in Hanoi city reflected that prices and living expenses of people are currently increasing. The regulation that individuals without dependents must pay income tax when their total income from salary and wages is over 11 million VND/month is not appropriate.

Therefore, voters of Hanoi city requested the Ministry of Finance to study and submit to the Government and the National Assembly to amend and raise the income from salaries and wages subject to personal income tax to at least 18 million VND/month.

Voters in Tra Vinh province proposed to increase the family deduction from 11 million VND to 15 million VND/month. Due to the current economic situation, wages and prices are increasing, making income not enough to ensure life.

Voters in Ho Chi Minh City have proposed raising the family deduction level to suit the current socio-economic situation. This is the second time in the past 3 months that voters in Ho Chi Minh City have proposed this content.

In addition, voters in Vinh Long province reflected that the current family deduction level is not suitable for the basic family and personal spending of officials, civil servants, and workers.

Therefore, voters of Vinh Long province recommend that the authorities should soon study and increase the family deduction level in calculating personal income tax to suit the current reality of life after the Government adjusted the basic salary from 1.8 million VND/month to 2.34 million VND/month.

Previously, from 2023, voters in many provinces and cities such as Ho Chi Minh City, Phu Tho, Da Nang, Nghe An, etc. also sent documents to the National Assembly requesting to increase the family deduction level. Because the current deduction level is too low, causing disadvantages for taxpayers, in the context of high prices of essential goods.

Family deductions will be revised when the replacement Personal Income Tax Law is drafted.

Regarding the above petitions of voters, the Ministry of Finance said it has received the document transferred by the Petition Committee.

Regarding this issue, the Ministry of Finance responded to the petitions of voters in Hanoi, Ho Chi Minh City, Vinh Long province and Tra Vinh province, all of which are related to increasing the family deduction level for individual taxpayers and the deduction level for dependents of taxpayers according to the provisions of the Law on Personal Income Tax.

Currently, to carry out the task assigned by the Prime Minister, at the end of November, the Ministry of Finance issued an official dispatch to widely solicit opinions from organizations and individuals on the proposal to develop a draft Law on Personal Income Tax (replacement).

One of the important contents being considered for research and amendment is the family deduction level for individual taxpayers and the deduction level for dependents of taxpayers, in order to conform to international practices and the socio-economic context of Vietnam.

Regarding family deductions, in the proposal to develop a replacement Personal Income Tax Law, the Ministry of Finance stated that in essence, the deduction level before calculating tax ensures the principle that individuals need to have a certain level of income to meet the essential needs of life such as food, accommodation, travel, study, medical treatment, etc. Therefore, only income above this threshold must pay tax.

According to the Ministry of Finance, the current family deduction level is 11 million VND/month for taxpayers and 4.4 million VND/month for dependents, applied from 2020 to present. Therefore, this level also needs to be reviewed and re-evaluated to propose amendments and supplements in accordance with new conditions.

The specific family deduction level needs to be carefully studied and calculated to ensure that it is consistent with price fluctuations as well as the increase in people's living standards in the recent period as well as forecasts for the coming time.

"At the same time, it is possible to consider studying the option of assigning the Government to regulate the family deduction level to ensure flexibility and proactive adjustment to suit the reality and requirements of the country's socio-economic development in each period" - said the Ministry of Finance.

The Ministry of Finance said the Government has proposed to include the Personal Income Tax Law (replacement) in the 2025 Law and Ordinance Development Program, submit it to the National Assembly for comments at the 10th session (October 2025), and approve it at the 11th session (May 2026).

Source: https://tuoitre.vn/cu-tri-dong-loat-kien-nghi-nang-muc-giam-tru-gia-canh-len-15-18-trieu-dong-thang-20241219182736708.htm