Family deduction - To be truly humane...

The resolution takes effect from the 2026 tax period - a decision welcomed by millions of workers, as it is a positive signal amid a life full of spending pressure.

This policy is not only fiscally significant but also a humanitarian move, demonstrating the State's concern for the quality of life of the people, especially those with average incomes. The timely adjustment after 4 years since the last update (2020) shows that the legislature has correctly recognized the reality: Nominal income may increase, but real value has been significantly eroded by inflation and escalating living costs.

However, for the family deduction policy to be truly effective, it is not just about "increasing the amount of money on paper". The important thing is to ensure that the increased income is not "swallowed up" by prices.

Therefore, first of all, it is necessary to strictly control the consumer price index, maintaining it at an average level of 4.5%, according to the Government's target for 2026. The tax reduction fiscal policy must go hand in hand with a prudent monetary policy. The State Bank needs to manage money supply and credit reasonably, keep interest rates and exchange rates stable, and avoid creating additional cost pressure for businesses - the direct source of rising commodity prices.

The Ministry of Industry and Trade and localities need to increase reserves of essential goods, ensure a smooth supply chain, and avoid local “price fevers” as have occurred in food, gasoline, or medical services. For sensitive groups of goods, there needs to be a flexible price stabilization mechanism, combining the market and state regulation.

Along with price control, it is necessary to synchronously adjust policies on wages, subsidies and social security. Increasing the family deduction level mainly affects the group of people with taxable income; meanwhile, the low-income group - who are not subject to tax - will not benefit directly. Therefore, the Government needs to continue to maintain the policy of subsidies, support for electricity bills, tuition fees, health insurance, and ensure fairness in the distribution of benefits.

From a tax management perspective, the Tax Department (Ministry of Finance) needs to promptly deploy digital applications to update dependent information, reduce confirmation procedures, and avoid tax refund delays or data errors. Transparency and convenience in implementation will be a measure of policy success.

In the long run, increasing the family deduction is only a “temporary remedy” to offset inflation. If we want people to have more income, we must improve labor productivity and create more high-quality jobs.

In addition, it is necessary to consider a mechanism to automatically adjust the family deduction periodically based on fluctuations in the consumer price index. This is a way to make the institution "breathe" with life - a principle that many countries have successfully applied.

Finally, the role of the media is very important. The family deduction policy needs to be widely disseminated and easy to understand, helping people clearly understand their rights and obligations. Transparency, publicity of the roadmap and implementation instructions will strengthen social trust - a soft factor but a solid foundation for the policy to come into life.

When every fiscal policy is linked to macroeconomic stability and social confidence, every tax cut will not just be a number, but a real value returned to workers - those who are contributing to maintaining growth and confidence in the economy.

Source: https://hanoimoi.vn/giam-tru-gia-canh-de-that-su-nhan-van-721199.html