The Government plans to submit to the National Assembly Standing Committee a proposal to increase the family deduction level according to fluctuations in the consumer price index at the October meeting this year.
The Ministry of Finance proposes to reduce tax rates to reduce the burden on personal income tax payers - Photo: TRI DUC
Speaking to Tuoi Tre on February 11, a representative of the Ministry of Finance said that implementing the Law on Personal Income Tax (PIT), the Government plans to submit to the National Assembly Standing Committee to increase the family deduction level (GTGC) according to fluctuations in the consumer price index at the October meeting this year, and at the same time calculate the time to apply the new GTGC level.
According to this person, the consumer price index (CPI) from 2020 to 2024 has increased by nearly 16%. And with the CPI increase expected to be around 4% this year, according to the scenarios previously proposed by the Ministry of Finance, the CPI from 2020 to the end of this year is likely to reach 20%.
At that time, according to the law, the Government will submit to the National Assembly Standing Committee for consideration to increase the GTGC level according to CPI fluctuations.
Tuoi Tre recorded additional opinions from a number of delegates and experts.
Associate Professor, Dr. Dinh Trong Thinh (financial expert):
New GTGC rate should be applied this year
The new VAT rate, when increased by 20% according to CPI developments as stipulated in the Personal Income Tax Law, will be VND 13.2 million/month for taxpayers and VND 5.3 million/month for dependents. This rate is still too low compared to price fluctuations, and does not meet the current taxpayers' minimum expenditures for food, housing, clothing, education, etc.
In fact, many taxpayers have to rent a house, or are paying monthly bank loan interest to buy a house worth 5-6 million VND/month but are not deducted before paying taxes. Even tuition fees to improve professional skills are not deducted before calculating taxes...
Therefore, the new VAT rate raised according to CPI fluctuations needs to be reported by the Government to the National Assembly Standing Committee soon and applied immediately in this year's tax calculation period.
The purpose is to comply with the provisions of the current law and to encourage and share difficulties with personal income tax payers. When building the replacement Personal Income Tax Law, I suggest that policy makers need to change their thinking so that the policies are reasonable and cannot be made to be a pressure and a heavy burden for the people.
Delegate Pham Van Hoa (member of the Law Committee):
Research and submit the Personal Income Tax Law according to the 1-session process, effective at the beginning of 2026
The VAT level of 11 million VND/month for taxpayers and 4.4 million VND/month for dependents has been maintained since 2020. After five years, the prices of many essential goods and services have increased, and some essential goods have even increased faster than people's income.
Therefore, the above-mentioned GTGC level is very outdated. Not to mention, the deduction for dependents of 4.4 million VND/month is also very outdated, especially in big cities, causing disadvantages for taxpayers.
If a family has small children, they have to hire a babysitter, and the salary for a babysitter alone is currently 6-7 million VND/month, or even higher. If a family has children going to school, the cost of education accounts for the majority of the family's spending structure...
Therefore, if we have to wait until 2026 to pass the new regulations of the Personal Income Tax Law and 2027 to apply them, it will be too slow, causing many people to be in a situation of "tightening their belts" but still having to pay personal income tax.
In addition, the basic salary from July 1, 2024 has increased by 30%, equivalent to an increase of 2.34 million VND/month, of course, many people's income has increased and their spending must also increase. However, now that increased income will be subject to personal income tax.
Invisibly, the salary increase will lose its meaning. Therefore, the Government and the Ministry of Finance should conduct research to adjust the amendment of the Personal Income Tax Law, including the appropriate level of VAT.
The Government is proposing to amend the Law on Promulgation of Legal Documents at the 9th extraordinary session. Based on the proposed amendment, for laws with few different opinions, it is possible to consider submitting them for approval through a shortened process at one session.
Regarding the Personal Income Tax Law, the content has received many comments from the recent sessions and the amendment is very urgent and necessary to meet the practical life, the Government can study and submit it to the National Assembly for consideration and approval according to the one-session process. Accordingly, it can be considered for approval at the 10th session (October 2025) and take effect from the beginning of 2026.
The revision of the VAT rate in particular and personal income tax in general must also be calculated to properly and sufficiently supplement people's living expenses.
Regarding the current GTGC level, it is necessary to consider that if the CPI index from 2020 to now has fluctuated by more than 20%, the Government needs to direct the Ministry of Finance to review, report, and then report to the National Assembly Standing Committee for consideration of adjustment in 2025.
Mr. Nguyen Van Duoc (General Director of Trong Tin Accounting and Tax Consulting Company Limited):
Can't wait until 2027 to adjust GTGC
The draft Law on Personal Income Tax will be discussed by the National Assembly in the October 2025 session and approved in the May 2026 session, and it may take too long to be applied from 2027. Because from 2020 to the end of 2024, the CPI has increased by nearly 16%.
In case the CPI increases to 20% by the end of this year, according to the law, the Ministry of Finance can report to the Government to soon submit to the National Assembly Standing Committee a proposal to increase the level of GTGC for salaried workers.
In case the CPI increase by the end of this year has not reached the 20% threshold, another solution can be considered: after the revised Personal Income Tax Law is passed by the National Assembly at the May 2026 session, it can take effect from July 1, or even apply the new personal income tax rate retroactively from January 1, 2026 to reduce disadvantages for the people.
From 2020 and 2021 until now, through the pandemic, the prices of goods and services... have increased a lot while workers' salaries have shrunk, life has become increasingly difficult, so these shortcomings need to be adjusted soon, and should not be allowed to last any longer.
Tax expert Nguyen Thai Son:
GTGC adjustment should not be delayed any further.
The unreasonableness of the VAT rate and the overly dense progressive tax rates have been raised by taxpayers and experts for many years. The outdated VAT rate is also the reason why recently 16 ministries and localities have proposed to raise the VAT rate by one and a half times compared to the current level.
Thus, it can be seen that the adjustment of the VAT rate and the progressive tax rates is very urgent and cannot be delayed any longer. This not only reduces the burden on salaried workers who are struggling to pay taxes, even though their income is not enough to cover their living expenses, but also helps stimulate purchasing power and help the economy recover.
Otherwise, people will have to continue to "tighten their belts" and purchasing power will decrease, and corporate income tax and VAT revenue will also be affected.
Therefore, we cannot use the excuse of waiting to revise a complete set of laws to delay, but instead, we should find a solution to promptly correct the above two shortcomings before submitting for approval the revision and completion of the Personal Income Tax Law to ease the burden on people and nurture revenue sources in the current context.
Source: https://tuoitre.vn/nang-muc-giam-tru-gia-canh-khong-the-cham-tre-hon-20250212080935726.htm
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