Proposal to authorize Government to determine taxable turnover thresholds

ĐBP - On the afternoon of April 21, the first session of the 16th National Assembly held group discussions regarding the draft Law amending and supplementing several articles of the Law on Personal Income Tax (PIT), the Law on Value Added Tax (VAT), the Law on Corporate Income Tax (CIT), and the Law on Special Consumption Tax (Excise Tax).

During the session, Trần Tiến Dũng, Member of the Party Central Committee, Secretary of the Điện Biên provincial Party Committee, and Head of the Điện Biên National Assembly Deputy Delegation, expressed high agreement with the necessity of the Law and the proposed amendments.

Trần Tiến Dũng, Member of the Party Central Committee, Secretary of the Điện Biên provincial Party Committee, and Head of the Điện Biên National Assembly Deputy Delegation, speaking during the discussion session.

He specifically supported delegating the authority to the Government to regulate the annual turnover thresholds for PIT exemptions for residents, VAT-free thresholds for business households and individuals, and CIT exemption thresholds for domestic organizations and enterprises. He argued that moving these specific figures out of the rigid text of the laws and into the Government’s hands would ensure administrative flexibility, help unlock resources, and drive the pursuit of “double-digit” growth targets.

Deputies from Group 12, which includes the delegations from Điện Biên, Hà Tĩnh, and Vĩnh Long, requested that the drafting committee provide more detailed information on the projected taxable turnover levels once the Law is ratified. Furthermore, they recommended that the Government continue researching and adjusting family circumstances deductions within the PIT Law to ensure they remain consistent with the actual cost of living for the populace.

Regarding the extension of special consumption tax incentives for battery-powered motor vehicles with fewer than 24 seats, Trần Tiến Dũng viewed this as a critical orientation to encourage the use of environmentally friendly transportation, contributing to the effective realization of green transition and sustainable development goals.

Deputy Prime Minister Nguyễn Văn Thắng providing explanations and information to the National Assembly deputies.

Addressing these concerns, Deputy Prime Minister Nguyễn Văn Thắng clarified that the draft Law focuses on shifting away from “rigid” taxable thresholds within the statutes, instead empowering the Government to make these decisions. If approved by the National Assembly, the Government will calculate adjustments based on socio-economic developments to harmonize support for citizens and businesses with the need to maintain budget balances, especially local budgets. Current projections suggest raising the taxable threshold for business households to VND 1 billion, which would result in a revenue reduction of approximately VND 4,850 billion. The Government also proposes a CIT exemption for small businesses with turnover below VND 1 billion to incentivize business households to transition into corporate models. Approximately 253,800 enterprises are expected to benefit from this, reducing budget revenue by about VND 2,100 billion and bringing the total policy impact to a reduction of around VND 7,000 billion.

Regarding battery electric vehicles, the Government proposes extending the preferential tax rates for those with under 24 seats until December 31, 2030, rather than ending the incentives in 2027. This extension aims to accelerate the transition from petrol to electric vehicles and support the public amidst fluctuating fuel prices. Touching upon the family circumstances deductions in PIT, the Deputy Prime Minister noted that while these levels were increased in 2025, the Ministry of Finance will be directed to continue a comprehensive evaluation to propose further suitable options to the National Assembly Standing Committee in the near future.

Mai Hồng
Comment

You have 500/500 characters left

Please enter 5 or more characters!!!

Recent news