The Ministry of Finance said that the deduction for backward family circumstances cannot be increased, so sad!

Why rely on fluctuations in the consumer price index when everyone sees that this regulation causes backwardness in family deductions?

The couple Nguyen Thi Hai Hau and Tran Cong Hung (Phu Huu ward, Thu Duc city) have two young children who are eligible for family deductions - Photo: TTD

As reported by Tuoi Tre Online , voters in Ho Chi Minh City have just proposed that the National Assembly and the Government adjust the family deduction level to suit the current socio -economic situation.

This is the third time in the past year that voters in Ho Chi Minh City have sent a document to the National Assembly requesting an increase in family deductions, while waiting for a comprehensive revision of the Personal Income Tax Law.

Because the current deduction of 11 million VND/month for taxpayers and 4.4 million VND/month for dependents is too outdated.

However, the Ministry of Finance replied that according to the provisions of the current Personal Income Tax Law, it is not possible to adjust the family deduction level, because the consumer price index (CPI) has fluctuated less than 20% since the time of the most recent adjustment of the family deduction level (2020).

What do readers and experts say about this?

From milk cartons to loaves of bread, prices are rising

Account duyp****@gmail.com said: "People's real lives are different. For example, a carton of milk has increased from 7,000 to 9,000 VND, instant noodles from 4,000 VND to 4,500 VND, rice eaten at the market is 20,000 - 23,000 VND/kg, a loaf of bread from 20,000 VND to 28,000 VND... All have increased in price."

According to reader Phan Minh, "the family deduction level should be automatically adjusted annually by the annual CPI increase and should be added by a certain percentage of the GDP increase."

Reader MiMi asked: "Why do we keep relying on the 20% CPI fluctuation when everyone sees that this level is outdated in terms of family deductions?

The revised tax law is expected to be passed in May 2026, so when will it be applied? Don't make people wait a few more years."

Reader DKN said: "The family deduction level should be applied by region to ensure fairness."

Meanwhile, account thie****@gmail.com shared: "We know that the price of goods has increased, spending on the lives of hired workers is very difficult, leading to the family deduction level being outdated. However, balancing the budget is also a burden at present."

Family deduction should be based on living conditions.

Speaking with Tuoi Tre Online , Dr. Nguyen Ngoc Tu, a senior tax expert and lecturer at the Hanoi University of Business and Technology, said that the delay in raising the family deduction level has caused taxpayers with income from wages and salaries to suffer.

"Because the deduction level is outdated compared to socio-economic fluctuations, with the 30% basic salary increase policy just applied on July 1, along with the price index from 2020 to now exceeding 12%.

"If we just use the CPI index to say that the fluctuation is less than 20% and still keep the family deduction level, it is not okay. This makes taxpayers very sad," said Mr. Tu.

Mr. Tu added that seven years ago, that is, since 2018, many contents of the Personal Income Tax Law such as progressive tax schedules, tax rates, etc. were acknowledged by the Ministry of Finance as outdated and obsolete.

However, this tax law has not been amended yet and must wait until October 2025 to be submitted to the National Assembly for comments. If it is passed in May 2026, it will not be applied until 2027, which is too inappropriate.

To reduce the disadvantage of individual taxpayers, especially salaried workers, while waiting for a comprehensive revision of the Personal Income Tax Law, Mr. Tu proposed that the Ministry of Finance soon submit to the Government and report to the National Assembly to increase the family deduction level and apply it from this year.

The specific level will be calculated in accordance with the conditions, situation and reality, ensuring that taxpayers are able to pay the most minimal expenses such as accommodation, travel, education, etc.

As for the current deduction of 4.4 million VND/month, it is not enough to raise a child in the city. Just the cost of food and school fees is much higher than this level.

What about the money for clothes, transportation…? The costs are getting more expensive, increasing every year, but the family deduction remains the same, which is unreasonable.

According to tax experts, not only voters in Ho Chi Minh City but also voters in many other places have previously petitioned to increase the family deduction level. This shows that this is a concern of many people.

Tax experts recommend that adjusting the family deduction level should be based on other factors such as the taxpayer's living conditions, fluctuations in the actual situation... and not just based on the increase in CPI.

With the taxpayers' recommendation, it is necessary for the Ministry of Finance to consider raising the current family deduction level.

Source: https://tuoitre.vn/giam-tru-gia-canh-lac-hau-ma-bo-tai-chinh-noi-chua-the-nang-qua-chanh-long-20241103122214436.htm