At a recent government meeting, Prime Minister Le Minh Hung gave an important directive.

The Prime Minister said the Ministry of Finance must design options for family circumstance deductions or research new tax thresholds to support people and businesses.

This is not the first time the Prime Minister has suggested reducing the burden on businesses, having previously raised the taxable revenue threshold.

The Government is sending a clear message: to grow the economy, citizens and businesses must be allowed to keep more resources.

Reducing burdens to promote growth

The Prime Minister's directive is about more than just taxation; it's about creating growth drivers for the economy.

High growth cannot rely solely on public investment or exports; it's driven by people and businesses operating daily.

An economy cannot remain dynamic if those creating wealth have less incentive to expand, and entrepreneurs feel regulated rather than encouraged.

The latest statistics show that reducing burdens on people is not just a slogan.

In the first five months of 2026, retail sales and consumer service revenue rose 11.2 percent, but real growth was only 6.1 percent after excluding price increases.

Notably, fuel prices rose 17.1 percent compared to the same period last year.

Many households are spending more to maintain their standard of living due to increasing electricity prices, rental costs, and living expenses.

Retail sales growth is not entirely due to people buying more, but because they are paying more for the same products and services.

Reducing burdens on people supports living standards and sustains the economy's growth momentum.

When revenue is not the same as income

Household businesses are directly affected by these changes, often viewed through the lens of revenue rather than actual income.

A retail household business generating VND1 billion in revenue may retain only VND100 million in profit after deducting operating costs.

Maintaining old tax thresholds is disconnected from reality as rents, electricity bills, and living expenses have risen significantly.

Household businesses are concerned about being treated differently from salaried workers, particularly regarding tax burdens.

Two people with the same family circumstances but different income sources may be treated unfairly regarding family circumstance deductions.

The proposal to consider family circumstance deductions for household businesses is about support and fairness.

Beyond taxation, household businesses are concerned about complex declaration procedures that may outweigh growth opportunities.

Discussions about tax reductions raise the question of whether state budget revenue will decline.

State budget revenue still increased by 15.3 percent year-on-year in the first five months of 2026.

The issue is not whether the budget has revenue sources, but how to ensure people and businesses retain resources to generate more revenue in the future.

Tu Giang