Currently, the VAT Law stipulates a revenue threshold of 100 million VND per year for tax exemption. According to calculations by the Ministry of Finance, raising the threshold to 200 million VND per year would exempt approximately 620,653 households from taxation, resulting in a reduction of about 2.63 trillion VND in state budget revenue annually. If the threshold were raised to 300 million VND per year, the number of exempt households would increase to 734,735, and state revenue would decrease by 6.383 trillion VND.

To ensure a reasonable adjustment to the revenue threshold for tax exemption, which aligns with the average growth rates of GDP and the Consumer Price Index (CPI) since 2013, the draft law establishes the threshold at 200 million VND per year.

For greater flexibility in administration and to adapt to evolving economic and social conditions, the government has been granted authority to adjust the revenue threshold as necessary.

This tax exemption provision received strong support from National Assembly deputies, with 204 deputies (accounting for 63.35% of the total) voting in favor. The new regulation not only reduces the tax burden on small businesses but also demonstrates fiscal policy flexibility aimed at fostering sustainable economic growth.

Vu Ho