The HCM City delegation of National Assembly (NA) deputies has sent a document to the National Assembly about HCM City voters’ proposal on family allowance adjustments to ensure taxpayers’ benefits, as well as a proposal on the extension of 2 percent VAT (value added tax) reduction in the next year. MOF said it was not the right time to raise family allowances.

It cited figures released by the General Statistics Office (GSO) as saying that the CPI (consumer price index) increased by 3.23 percent in 2020, 1.84 percent in 2021, 3.15 percent in 2022 and 3.25 percent in 2023, which means that the total CPI increase since the latest family allowance adjustment (2020) is still below 20 percent. Therefore, under the current Law on Personal Income Tax, it is impossible to adjust the allowance now. 

Personal Income Tax (PIT) is designed to re-distribute income in the society. The implementation of the tax law plays a very important role in the state budget collection. Together with other sources of income, PIT collections help to satisfy needs for investment and development and national defence, and to ensure social security and hunger elimination and poverty reduction.

Under the current law, family allowances are VND11 million a month applied to taxpayers and VND4 million for every dependent family member. This means that those who do not have to pay PIT are taxpayers with a monthly income of VND17 million and one dependent family member; and taxpayers with monthly income of VND22 million and two dependent family members (after deducting social insurance, health insurance and unemployment insurance premiums). 

MOF said it is reviewing the implementation of PIT Law, including the provision on family allowances before it submits a report to the government and National Assembly Standing Committee for amendment under the National Assembly’s law building program, to ensure conformity with Vietnam's socio-economic conditions as well as international practices.

It is expected that the PIT Law amendment project would be registered to be implemented in the National Assembly 2025 law building program. The draft law would be submitted to the National Assembly for opinions in October 2025 and ratification in May 2026. 

Voters in Binh Dinh, Ha Giang, Thai Nguyen, Tra Vinh, Tuyen Quang and Tay Ninh also have repeatedly urged MOF to adjust family allowances. 

Tuan Nguyen