- The Ministry of Finance is seeking opinions on continuing to reduce the VAT rate by 2% for certain goods and services for the first 6 months of 2024.
- The proposal aims to support domestic businesses in their recovery from the COVID-19 pandemic.
- The global economic situation is expected to remain complex and unpredictable, so it is necessary to continue implementing financial policies to stimulate domestic consumption.
- The reduction of the VAT rate by 2% for goods and services subject to a 10% tax rate has been stable in 2022 and 2023.
- The proposed reduction will not apply to certain sectors such as telecommunications, finance, real estate, and mining.
- The reduction will be effective from January 1, 2024, to June 30, 2024, with further consideration for extension based on the economic situation.
- It is estimated that the reduction will result in a decrease in state budget revenue of about 25 trillion VND.
- The Ministry of Finance will coordinate with relevant ministries and localities to ensure effective implementation and management of tax laws.
- The proposal will be included in the government’s report on the implementation of the state budget in 2023 and the budget estimate for 2024 to be presented to the National Assembly.
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
