The Ministry of Public Security proposes to exempt personal income tax on wages and salaries from the state budget.

The Ministry of Public Security made the above proposal in a document providing comments on the draft revised Law on Personal Income Tax.

The Ministry of Public Security proposes to exempt personal income tax on wages and salaries paid from the state budget - Photo: Contributor

Ministry of Public Security: additional processes, procedures, and personnel departments

Specifically, the Ministry of Public Security believes that it is necessary to study and supplement regulations on personal income tax exemption for income from salaries, wages and other wages paid from the state budget.

Because according to the State Budget Law 2025, tax revenues in general and personal income tax in particular are state budget revenues.

Therefore, collecting the state budget to pay salaries, wages and other salary-like amounts to employees, then collecting personal income tax on the salaries and wages paid by the budget to submit to the state budget creates additional processes, procedures, and human resources departments to collect taxes.

Ministry of Finance : inappropriate, likely to cause reaction

Responding to this proposal, the Ministry of Finance believes that the Personal Income Tax Law applies uniformly to all individuals with income reaching the taxable threshold.

Tax exemption for salaries and wages from the budget is inappropriate and can easily cause public backlash.

"Individuals must pay equal taxes when they have the same taxable income, regardless of whether they are in the public or private sector. The same principle applies to family deductions," the Ministry of Finance responded.

Regarding personal income tax revenue, according to the Ministry of Finance, personal income tax revenue by the end of June reached VND 125,054 billion, equal to 70% of the estimate. Personal income tax revenue increased rapidly, each year increasing higher than the previous year, such as in 2024 accounting for more than 9.3% of total budget revenue, while in 2011 it was only 5.3%.

According to the program, the draft Law on Personal Income Tax (amended) will be considered and approved by the National Assembly at the October session. Inadequate policies of this law such as family deductions, progressive tax rates, etc. will be amended.

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LE THANH

Source: https://tuoitre.vn/bo-cong-an-de-xuat-mien-thue-thu-nhap-ca-nhan-cho-tien-cong-tien-luong-tu-nguon-ngan-sach-20250916205411482.htm