Need to increase family deduction for personal income tax calculation

This is the issue raised by National Assembly Delegate Nguyen Hoang Bao Tran ( Binh Duong delegation) when questioning Minister of Finance Ho Duc Phoc at the 31st Session of the National Assembly Standing Committee.

According to the female delegate, voters believe that the deduction of 11 million VND for individual taxpayers and 4 million VND for dependents when calculating taxable income for personal income tax, which has been applied up to now, is no longer suitable in the context of the annual increase in inflation and the socio-economic situation facing many difficulties.

Dai bieu quoc hoi khi nao nang muc giam tru gia canh tinh thue thu nhap hinh anh 1 — Minister Ho Duc Phoc answers questions from National Assembly deputies

Responding, Minister Ho Duc Phoc also said that many press agencies stated that the personal income tax rate is not suitable for current conditions when prices are high and family income, especially in urban areas, does not meet requirements.

However, Mr. Ho Duc Phoc also emphasized that it is still necessary to follow the provisions of the law. To change the family deduction level, the personal income tax law must be amended.

“According to the plan, the personal income tax will be revised in 2025, at which time the Ministry of Finance will present its views and seek opinions from all walks of life and agencies; at that time, it will rebuild the family deduction factor and submit it to the Government, the Standing Committee of the National Assembly, and the National Assembly. After the National Assembly issues regulations on the revision of personal income tax, it will be implemented in accordance with the new provisions of the law,” said the Minister of Finance.

Sending questions to leaders of the financial sector, delegate Tran Hoang Ngan said that 2024 is important in successfully implementing socio-economic targets in the spirit of the 13th National Party Congress.

According to him, there needs to be more breakthrough solutions, especially tax and fee reductions to support businesses and people, because the number of businesses currently withdrawing from the market is very large.

This delegate also suggested paying attention to increasing the family deduction level in calculating personal income tax, contributing to increasing consumption and supporting economic growth in the coming time.

Dai bieu quoc hoi khi nao nang muc giam tru gia canh tinh thue thu nhap hinh anh 2 — Delegate Tran Hoang Ngan raised a question at the Ho Chi Minh City bridgehead.

In response to the concerns of delegates, Minister Ho Duc Phoc emphasized that the National Assembly recently reduced many taxes and fees to support people and businesses. However, he said that to overcome economic difficulties, it is necessary to focus on removing legal bottlenecks, investment procedures, environment, product quality, and credit, not just reducing taxes and fees.

“Reducing taxes and fees will reduce the strength of public finance while the country is still running a budget deficit, which is ineffective and affects the entire economic system. Therefore, it should be applied synchronously. When businesses do well, they will not owe taxes, banks, bonds, or insurance. If they have savings, the country will be strong,” said Mr. Ho Duc Phoc.

Source