Vietnam proposes building a Resolution of the National Assembly on reducing VAT by 2%

• The Ministry of Finance in Vietnam is seeking opinions on a proposal to reduce the value-added tax (VAT) from 10% to 8% for certain goods and services in the first 6 months of 2024.
• The Ministry of Finance has sent a letter requesting opinions on the reduction of VAT for the first 6 months of 2024.
• The proposal aims to stimulate consumer demand and promote economic recovery and development.
• The Ministry of Finance proposes a 2% reduction in the VAT rate for goods and services currently subject to a 10% rate.
• The reduced VAT rate would not apply to telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal products, pre-cast metal products, mineral products (excluding coal mining), refined petroleum, chemical products, and goods and services subject to special consumption tax.
• The policy would be implemented from January 1, 2024, to June 30, 2024.
• The Ministry of Finance estimates that the reduction in VAT would result in a decrease in state budget revenue of approximately 4,175 billion VND per month, or about 25,000 billion VND for the first 6 months of 2024.
• The Ministry of Finance plans to coordinate with relevant ministries and localities to effectively implement tax laws, simplify administrative procedures, and strengthen revenue management.
• The government will also review and reduce unnecessary expenditures to ensure budget balance.

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.

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