Need to increase to 18 million VND/month
The Ministry of Finance is seeking opinions on the draft Law on Personal Income Tax (replacement), in which it is proposed to increase the family deduction from the current 11 million VND/month to a maximum of 15.5 million VND/month, applicable from the tax calculation period in 2026. The current level of 11 million VND/month has been maintained since July 2020, while people's income and living expenses have had many major changes.
This proposal received great attention from public opinion and experts. In an interview with Lao Dong Newspaper, Dr. Nguyen Ngoc Tu - Lecturer at the University of Business and Technology assessed that this is a positive step forward, but still not enough to make up for the long-term difficulties that salaried workers have experienced.
Analyzing the two options proposed by the Ministry of Finance, Dr. Nguyen Ngoc Tu said that the second option - raising the family deduction level to 15.5 million VND/month is a positive signal compared to the traditional adjustment method, which is only based on the CPI increase. "If done in the old way, it will only increase from 11 to about 13.3 million VND. This time, the Ministry of Finance has proposed a better option, showing listening to public opinion and sharing with taxpayers, he said.
However, he also noted that over the past 5 years, people working for salaries and the most stable tax-paying group have been the group that has almost never received any tax support policies. Meanwhile, the economy has experienced many major shocks, from the COVID-19 pandemic to natural disasters, escalating prices, ...
During the period of 2019-2022, the epidemic broke out, businesses were supported with tax exemptions and extensions, while salaried workers had almost nothing. They still pay taxes evenly, while the costs of healthcare, education, living expenses... all increase. If we continue to maintain the current deduction level, this group is clearly at a disadvantage, said Dr. Tu.
From there, he proposed that the family deduction should be increased to 18 million VND/month for taxpayers, and 9 million VND/month for each dependent. This is a level supported by many experts because it is closer to actual spending of workers, especially in urban areas, where living expenses have increased significantly compared to the period before 2020.
Proposal to apply early from the 2025 tax calculation period
Another important point emphasized by Dr. Tu is the time of application. According to the draft, the new family deduction policy is proposed to be applied from the tax calculation period in 2026. However, he said that it should be applied earlier, starting in 2025.
"Technically, personal income tax for 2025 will not be settled until April 2026. Thus, adjusting the deduction level applied to 2025 is completely feasible, without any obstacles in organizing implementation, he analyzed.
He also cited that in the first 6 months of 2025, according to the report of the Ministry of Finance, the revenue from personal income tax reached nearly 70% of the annual estimate. Therefore, adjusting the family deduction from 2025 will not put significant pressure on budget revenue.
Not only favorable in terms of technology and revenue, early application also has great psychological and social significance. "The workers have been waiting for too long. If it continues to be delayed until 2026, it will be another year to "ring up the belt". Immediate adjustment will be a good signal, an important spiritual motivation, helping them feel secure in paying taxes, continuing to work and contribute, Mr. Tu emphasized.
Dr. Tu also said that in the context of the Government's efforts to promote economic growth, support consumption and stabilize people's lives, tax policy adjustments need to be implemented synchronously and promptly. " Household deduction is not just a technical number, but a social policy. This is the time to act quickly, promptly and decisively, he said.
