VnExpress International
The most read Vietnamese newspaper
Vietnamese Edition
| Contact us | Follow us on       
Business DataSpeaks Property Markets Companies Economy Exchange rate Money
reddit Print

Finance ministry mulls raising income threshold for taxing household businesses

By Phuong Dung   January 7, 2024 | 09:07 pm PT
Finance ministry mulls raising income threshold for taxing household businesses
A person looks at a fruit at a store in District 1, Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The Ministry of Finance is considering raising the income threshold for value-added tax for household businesses by 50% to account for inflation.

Currently they pay VAT, at 8%, if their annual revenues are VND100 million ($4,100) or higher.

This threshold was fixed 10 years ago, and the consumer price index, which measures inflation, has gone up substantially.

So the threshold should be changed to VND150 million, the ministry said.

There are 5.5 million household businesses in the country that account for 30% of its GDP, according to the General Statistics Office.

VAT accounts for more than 20% of the government’s revenues.

The ministry is also considering abolishing VAT in border areas to boost their economy and making more items duty-free at the border except for cigarettes, alcoholic drinks and fuel.

 
 
go to top