Proposal to increase family deduction to 20 million VND/month

That is the proposal of the National Assembly Delegation of Dien Bien province to contribute ideas to the draft resolution of the National Assembly on adjusting the family deduction level.

Rising prices of essential goods make life increasingly difficult for individual taxpayers - Photo: QUANG DINH

The Ministry of Finance proposed a family deduction of 15.5 million VND/month.

In the draft Resolution of the National Assembly Standing Committee on adjusting family deduction levels recently sent to the Ministry of Justice for appraisal, the Ministry of Finance proposed two options.

Specifically, according to option 1, the family deduction for taxpayers is 13.3 million VND/month and for dependents is 5.3 million VND/month.

Option 2 has a deduction for taxpayers of 15.5 million VND/month and for dependents of 6.2 million VND/month.

The basis for the above proposal, the Ministry of Finance said, is that the consumer price index from 2020 to the end of this year is forecast to increase by more than 21.2%.

The Ministry of Finance proposes to choose option 2. According to the Ministry's calculations, most taxpayers at level 1 will switch to non-taxpaying status (about over 95% of taxpayers at level 1).

A portion of individuals paying taxes at level 2 will change to non-taxpaying status or move down to paying taxes at level 1.

Similarly, individuals in the remaining tax brackets receive a reduction in the amount of personal income tax payable.

Accordingly, the budget revenue from this tax is expected to be about 84,477 billion VND, a decrease of about 21,000 billion VND/year compared to the current prescribed level. The number of people still having to pay tax is about 2.21 million people, a decrease of 2.18 million people compared to the current family deduction level.

The Ministry of Finance also proposed a new family deduction level applicable from January 1, 2026.

Voters suggest it should be increased to 20 million VND/month

Commenting on the above draft Resolution, the National Assembly Delegation of Dien Bien province assessed that the family deduction level in both options proposed by the Ministry of Finance is still low, not meeting the actual living needs of food, accommodation, travel, education , health care and other expenses of taxpayers and dependents.

"To make the family deduction level suitable to reality, ensure stability, and be consistent with the growth rate of the consumer price index in 2025 and the period 2026-2030, the Ministry of Finance considers raising the family deduction level for taxpayers to 20 million VND/month (240 million VND/year).

"The family deduction for each dependent is proposed to be increased to 10 million VND/month" - National Assembly Delegation of Dien Bien province proposed.

The National Assembly delegation of Dien Bien province argued that this adjustment not only ensures the principle of fairness and fosters sustainable revenue sources, but also helps people overcome the pressure of increasing living costs. At the same time, the policy also contributes to expanding the scope of voluntary tax declaration and payment in a transparent and stable manner.

In an interview with Tuoi Tre Online , many experts said that the family deduction level should be higher than the plan proposed by the Ministry of Finance. The purpose is to ensure that the policy does not fall behind reality and cause disadvantages for those who pay personal income tax from wages and salaries.

According to Mr. Nguyen Ngoc Tu, a tax expert, family deductions are essential expenses to meet the most basic needs of taxpayers including food, accommodation, clothing, travel, education, medical treatment, etc. Therefore, the family deduction should be raised to 18 million VND/month for taxpayers and 9-10 million VND for dependents and applied immediately this year.

In fact, the costs of basic necessities have increased too much over the past 5 years. On the other hand, the increase in family deductions is not only based on the price index growth rate but also on the increase in minimum wage, average income per capita, etc.

Previously, during the past 2 years, voters in many provinces and cities such as Ho Chi Minh City, Phu Tho,... all commented that the family deduction level was too outdated and proposed to raise it to 18 million VND/month for taxpayers.

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LE THANH

Source: https://tuoitre.vn/de-xuat-nang-muc-giam-tru-gia-canh-len-20-trieu-dong-thang-20250909135320496.htm