According to the agenda, on the morning of April 23, the National Assembly will discuss in the chamber the draft law amending and supplementing several articles of four tax laws. Notably, the content of interest is the proposal to authorize the government to set the tax-free revenue threshold for business households, higher than the current 500 million VND per year.

Contributing to this content, many business households and National Assembly delegates propose raising it to 2-3 billion VND per year, while simplifying declaration procedures, electronic filing, and tax calculation methods to reduce the burden on small traders.

High taxes, thin profits, business households struggle to survive

Ms. N.T. Hang, a business household in Cua Nam ward (Hanoi), believes the tax-free threshold should be raised to at least 2 billion VND per year, as input costs have risen sharply, pulling up commodity prices.

According to Ms. Hang, revenue of 2 billion VND per year is equivalent to 167 million VND per month, or 5.5 million VND per day. With a price of 45,000 – 50,000 VND per bowl, selling just 120 – 150 bowls of pho daily would hit the tax-paying threshold.

Meanwhile, selling over 100 bowls of pho per day requires at least three workers. If profit reaches 10-12%, corresponding to 200-250 million VND per year, divided among three people, it is quite low. Moreover, the tax rate applied to food services includes personal income tax and value-added tax at 4.5%, which is quite high.

“If revenue is below this threshold and taxes are still required, small traders can hardly survive. If profits are insufficient, how can they sustain their livelihood? We really want to do business long-term and pay taxes, but policies need to be appropriate,” Ms. Hang said.

Similarly, Ms. Ph., owner of a grocery store on Ngo Thi Nham Street (Ha Dong district, Hanoi), said raising the taxable revenue threshold for business households is very welcome. However, the specific level must ensure small traders can feel secure doing business.

According to Ms. Ph., grocery retail has very low profit margins of only 5-8%, with some items yielding just 2% profit. For example, a 2-liter can of cooking oil costs 104,000 VND to import but sells for only 112,000 VND. Or a can of Ensure milk sells for 810,000 VND but the import price is around 780,000 – 790,000 VND. Capital costs are very high, and profits are thin.

Ms. Ph. said she just completed filing and paying taxes for the first quarter, with revenue of 420 million VND and tax payment of 6.3 million VND. This means a monthly profit of about 12 million VND with a tax of 2.1 million VND, equivalent to 17% of profit.

To ensure fairness with salaried workers, she proposes that only revenue above 3 billion VND should be subject to personal income tax. To reach this level, the store needs to hire 1-2 additional workers, while business households are not allowed deductions for dependents

Cua Nam ward

Cua Nam ward is a central urban district in Hanoi, Vietnam, known for its historical significance as one of the city’s oldest residential and commercial areas. Its name, meaning “Southern Gate,” refers to a former city gate that once marked the southern entrance to Thang Long (Hanoi’s ancient name), which was part of the city’s defensive walls built during the Nguyen Dynasty. Today, the ward blends traditional Vietnamese architecture with modern development, reflecting Hanoi’s rich cultural heritage and urban evolution.

Hanoi

Hanoi, the capital of Vietnam, is a city of rich history dating back over a thousand years, serving as a political and cultural center through various dynasties, French colonial rule, and the Vietnam War. Known for its blend of ancient architecture, such as the Temple of Literature and the Old Quarter, with French colonial influences, it also features iconic sites like Ho Chi Minh’s Mausoleum. Today, Hanoi is a vibrant metropolis that preserves its heritage while embracing modernity.

Ngo Thi Nham Street

Ngo Thi Nham Street in Hanoi, Vietnam, is named after the prominent 18th-century scholar and poet Ngô Thì Nhậm, who served under the Tây Sơn dynasty and contributed to Vietnamese literature and philosophy. The street reflects Hanoi’s tradition of naming roads after historical figures, offering a glimpse into the city’s cultural heritage. Today, it is a typical urban street lined with shops and residences, blending modern life with historical commemoration.

Ha Dong district

Ha Dong is a suburban district of Hanoi, Vietnam, with a history dating back to the pre-colonial era. It was once the capital of the former Hà Đông province before being merged into Hanoi in 2008. Today, it is known for its traditional silk-weaving villages and rapid urbanization, blending cultural heritage with modern development.