On the morning of May 29, contributing her opinion during the discussion session, Deputy Chairwoman of the National Assembly's Judicial Committee Nguyen Thi Thuy ( Bac Kan delegation) emphasized that the regulation on family deductions for calculating personal income tax (PIT) is "too outdated". According to delegate Thuy, the deduction for dependents of 4.4 million VND per month "is really no longer suitable for the current situation, especially in big cities, causing damage to taxpayers".
Consumer prices are assessed to have increased recently.
This deduction has been maintained since 2020, while recently many essential goods and services have increased faster than income. According to the General Statistics Office, compared to 2020, the price ofeducation services increased by 17%, food prices increased by 27%, and gasoline prices increased by 105%... "If we have to wait another 2 years (2026) to pass the amendment to the Personal Income Tax Law as proposed, many people will have to tighten their belts but still have to pay personal income tax," Ms. Thuy said and recommended that the Government soon submit to the National Assembly the amendment to the Personal Income Tax Law in October this year for approval at the May 2025 session.
Delegate Dang Bich Ngoc ( Hoa Binh delegation) cited data showing that the personal income tax settlement in 2009 was 14,318 billion VND, and by 2022 it would be 162,790 billion VND, accounting for 11.2% of total domestic revenue and 11.4 times higher than the settlement in 2009. Ms. Ngoc suggested that the Government soon study and comprehensively amend the Personal Income Tax Law in the direction of only calculating tax on high-income earners. This is consistent with the scale of economic development and does not affect low-income earners.
Explaining on the same afternoon, Finance Minister Ho Duc Phoc said that personal income tax was applied from 2009, with the initial tax rate of 4 million VND and the dependent deduction of 1.6 million VND/person. After adjustment in 2013, the tax rate was 9 million VND and the deduction was 3.6 million VND. According to the law, when the CPI index fluctuates over 20%, the National Assembly Standing Committee will adjust the family deduction. By 2020, the National Assembly has a resolution to increase the income tax rate from 11 million VND and the dependent deduction is 4.4 million VND.
Explaining why the personal income tax rate has not been adjusted, Mr. Phoc said that the current average income according to the General Statistics Office is 4.46 million VND/person/month, while the tax rate is from 11 million VND, which is 2.2 times higher than the average income, while the world average is less than 1 time.
"In addition, the CPI from 2020 to now has only increased by 11.47%. According to the law, only when the family deduction level is above 20% can the adjustment be made. Thus, the Ministry of Finance is implementing the law on family deductions correctly," said Mr. Phoc, and informed that the Standing Committee of the National Assembly has included the adjustment of personal income tax in the law-making program. Accordingly, the Personal Income Tax Law will be amended in October 2025 and can be passed at the May 2026 session. However, "if the Standing Committee of the National Assembly decides to draft the law by the end of this year and apply it from 2025, we will comply," said Mr. Phoc.
Source: https://thanhnien.vn/nguoi-dan-that-lung-buoc-bung-dong-thue-thu-nhap-185240529235040122.htm
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