"I suggest that the Government soon submit to the National Assembly to have a policy to increase the total demand and it is necessary to soon adjust personal income tax in the direction of raising the family deduction level, I think it cannot be delayed any longer than this issue".
Delegate Tran Hoang Ngan (Ho Chi Minh City Delegation) spoke so at the National Assembly's discussion session on the socio-economic development situation and the State budget on the morning of June 17.
Similarly, delegate Nguyen Hoang Bao Tran (Binh Duong delegation) said that the current personal income tax policy is outdated and "it is time for the adjustment period according to regulations". Delegate Nguyen Hoang Bao Tran suggested that the Government should take concrete action as soon as possible because the people have been waiting for this issue for too long.
Adjusting personal income tax is not a new issue mentioned in the National Assembly forum, but this is an issue that is always hot and receives the attention and anticipation of many voters nationwide.
In fact, the current family deduction - 11 million VND/month for taxpayers and 4.4 million VND/dependent - has been applied since 2020 and has only been adjusted once since 2013.
During the same period, the level of consumer prices, education, healthcare, housing costs, etc. have increased significantly, especially in large cities. This means that people increasingly have to pay taxes on their actual income is no longer "affordable", because most of them have been eroded by living expenses.
Tax policies, if there is a gap with practical life, will hit the purchasing power, not only of individuals, but of the entire economy.
Because the personal income tax paying class is mainly workers with a good average income, who are also the main consumers of the domestic economy.
When they have to " though up" because income tax is higher than they can bear, it also means that consumer demand is reduced, businesses have more difficulty selling, and the economy recovers more slowly.
In addition to economic reasons, there is also an aspect that cannot be ignored: tax policy is a measure of fairness and trust in the State.
When taxes are not adjusted according to the rhythm of life, people feel unreasonably burdened, especially in the context of escalating prices, difficulty in employment, and increasingly large spending on health care and education.
The delay in adjustment not only causes material damage, but also erodes confidence in policy updates and responsibility.
The National Assembly's continued raising the issue of personal income tax and "requesting the Government to take specific action as soon as possible" at a major discussion session is a positive signal, bringing a lot of hope to taxpayers.
It is impossible to let an important policy such as personal income tax stand still, while people's lives have changed strongly through many global and domestic economic fluctuations.
Reducing taxes at the right time and for the right groups of subjects is not an incentive, but a fair responsibility in budget management.
