Many opinions say that the new policy not only helps reduce tax burden, but also arouses the spirit of solidarity and responsibility of people in fulfilling their obligations to the State budget.
Timely adjustment
According to the Resolution recently passed by the National Assembly Standing Committee, the family deduction level is increased from 11 million VND to 15.5 million VND/month for taxpayers and from 4.4 million VND to 6.2 million VND/month for each dependent, applied from the 2026 tax period. This is the first adjustment after 5 years of applying the old level, which is considered suitable for price fluctuations and average income of people in the current period.
According to calculations, a single person with an income of 17 million VND/month will not have to pay tax; if there is one dependent, the "no tax" threshold is 24 million VND/month; if there are two dependents, it is 31 million VND/month. This adjustment is expected to reduce the budget revenue by about 21,000 billion VND per year, but is considered a "popular revenue reduction", contributing to strengthening social trust in tax policy.
Compared to the price developments in recent years, this increase basically offsets the accumulated inflation and the rising cost of living, especially in large cities. According to many economic experts, the move of the National Assembly Standing Committee is the right step, demonstrating sensitivity to practical requirements. When prices are escalating, the costs of education, health care, and housing are all increasing, this adjustment is not only reasonable but also deeply humane.
Dr. Nguyen Van Binh - a public finance expert commented: "The old family deduction level no longer accurately reflects the minimum living expenses of the people. Increasing the deduction level helps workers have more disposable income, thereby contributing to stimulating consumption and increasing demand in the economy."
In terms of policy signals, increasing the family deduction level demonstrates the State's support for wage earners - the group most clearly affected by price fluctuations. When tax policies are adjusted appropriately, people feel a sense of sharing and fairness, thereby being more willing to fulfill their tax obligations voluntarily.
Workers are excited
Receiving this good news, many workers expressed their excitement. Ms. Nguyen Thi Hoai, a worker at Quang Minh Industrial Park ( Hanoi ), shared that for many years, with a family deduction of 11 million VND/month for the taxpayer and 4.4 million VND/month for each dependent, she is still subject to personal income tax.
“The rent, living expenses, and children's tuition fees have all increased, while income has not increased significantly. When I heard that the Government had adjusted the deduction level, I felt more relieved because it was an understanding of the lives of workers,” said Ms. Nguyen Thi Hoai.
Ms. Nguyen Thi Ly, a worker at Sai Dong B Industrial Park (Hanoi), said that the current deduction level is outdated compared to reality, especially after the Covid-19 pandemic, when many people's incomes were affected while prices of goods and services increased. The new tax policy has demonstrated a people-centered development philosophy.
“When people have more disposable income, purchasing power will increase, thereby promoting production, business and service development. A humane policy always creates a positive ripple effect for the entire economy,” said Ms. Nguyen Thi Ly.
From practice, Ms. Nguyen Thi Ly also recommended that the State should establish a mechanism to automatically adjust family deductions according to the consumer price index (CPI) to ensure that policies keep up with real life.
“We should not wait 5 or 7 years to make adjustments, because after just a few years of inflation, people's real incomes can drop sharply. In addition, we should also consider adjusting the progressive tax schedule so that middle-income earners are not pushed up to higher tax brackets just because of inflation,” Ms. Nguyen Thi Ly suggested.
Not only receiving support from workers, the National Assembly Standing Committee's approval of the Resolution on increasing the family deduction level has received high consensus from experts. Although this policy may reduce a part of the revenue source by about 21,000 billion VND/year compared to the current revenue level, in the long term, this is the right decision, contributing to promoting consumption, social stability and sustainable growth.
According to the Ministry of Finance, increasing the family deduction level is not only a short-term solution to reduce financial pressure on people but also a step in the personal income tax reform roadmap. In the coming time, this agency will continue to review and amend the Personal Income Tax Law towards simplifying procedures, expanding the subjects of tax exemption and reduction and ensuring long-term stability.
Source: https://hanoimoi.vn/thue-thu-nhap-ca-nhan-dieu-chinh-kip-thoi-nhan-van-sat-thuc-te-doi-song-720229.html
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