Dr. Nguyen Ngoc Tu - former Director of the General Department of Taxation, currently a lecturer at Hanoi University of Business and Technology - highly appreciated the Ministry of Finance's proposal of two options that are beneficial to taxpayers and closer to reality.
Accordingly, option 1 (traditional) is to increase the family deduction from 11 million to about 13.3 million VND, corresponding to a 20% increase according to CPI and dependents by 40%.
Option 2 (new), the Ministry of Finance increases the family deduction to 15.5 million VND/month for taxpayers based on the average GDP growth rate per capita and average income per capita. The payment level for dependents increases from 4.4 million VND to 6.2 million VND/month.
“This is a new approach to replace the previous traditional approach and is beneficial to taxpayers,” Dr. Tu said.
However, according to Mr. Tu, since July 2020, when we adjusted taxes, after 5 years, Vietnam's context has changed, especially when the COVID-19 pandemic occurred from 2019 to 2022. Then, people were severely affected by Typhoon Yagi in 2024, which caused widespread destruction, causing many difficulties for the economy .
Along with that, the world situation has also had many fluctuations, affecting Vietnam's export market, thereby also affecting workers' jobs, causing income to decrease. " In these difficult conditions, a higher family deduction is needed. I think that if the family deduction is raised to 17-18 million VND/month, it will be more suitable for current taxpayers ," Mr. Tu commented.
Sharing the same view, National Assembly delegate Nguyen Quang Huan (HCMC delegation) commented that the Ministry of Finance has innovated and accepted public opinion when proposing tax policies, especially increasing the family deduction level is a reasonable step forward. However, this level still does not fully reflect the actual spending pressure of the people, especially the urban middle class.
“The current deduction level is outdated. Actual costs for education, healthcare, housing, energy, etc. in urban areas have increased more rapidly than the CPI. The level of 13.3 - 15.5 million VND/month has not kept up with this growth rate. I propose that it can be raised to the initial level of 20 million VND/month. When tax is reduced, people will increase their spending on shopping. Thereby, domestic production and business activities will develop accordingly,” Delegate Huan commented.
Mr. Huan also proposed to study the zoning mechanism - for example, the deduction level in Ho Chi Minh City and Hanoi is higher than in the provinces - like the current regional minimum wage regulations. At the same time, it is necessary to loosen the conditions for proving dependents and add a deduction mechanism for expenses of high social significance such as general tuition fees and medical expenses outside of health insurance.
"Personal income tax policy needs to be more flexible to both ensure revenue and properly support workers," Delegate Huan said.
New rates should be applied in 2025
According to the Ministry of Finance, the Ministry is expected to submit to the National Assembly Standing Committee a draft on personal income tax at the National Assembly session in October 2025 and will apply it in the 2026 tax period. However, experts say the new rate should be applied immediately.
“ I propose to apply it immediately in 2025 because the Resolution issued in October can be applied immediately, unlike the Law.
In addition, personal income tax in 2025 is only provisional, and final income tax is in the first quarter of 2026. Therefore, there is still plenty of time for us to apply the new personal income tax calculation method for 2025.
Early application will promptly encourage and motivate taxpayers, creating confidence in amending the personal income tax law ," Mr. Tu suggested.
Regarding the possibility that applying the new family deduction level could reduce the budget, Mr. Tu said that it could be reduced but not significantly because according to the announcement of the Ministry of Finance, tax collection has reached nearly 70% of the yearly plan.
Delegate Nguyen Quang Huan also stated that applying it to the 2025 tax period will help taxpayers reduce some of the burden and feel timely support.
Meanwhile, Mr. Nguyen Van Phung, former Director of the Department of Taxation of Large Enterprises, proposed to publicize the basis for proposing family deduction levels.
“Previously, we proposed from 4 million, to 9 million and then 11 million, all based on scientific and practical grounds from the survey of population income, expenditure survey... and also based on practical grounds and Article 19 of the Personal Income Tax Law.
Now, we have to calculate specifically to come up with an appropriate family deduction level. If the CPI increases by 20%, we increase the family deduction level by 20%, if the CPI increases by 25%, we calculate the family deduction level to increase accordingly. Mr. Phung commented.
Source: https://baolangson.vn/de-xuat-giam-tru-gia-canh-len-15-5-trieu-dong-thang-chuyen-gia-noi-can-tang-nua-5054086.html
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