The Vietnamese government is providing around 19,488 billion VND in support through a 2% reduction in value-added tax (VAT) for the first 5 months of 2024.
– The Ministry of Finance estimates that the 2% VAT reduction under Resolution No. 110/2023/QH15 during the first 5 months of 2024 has supported businesses and people with around 19,488 billion VND.
– Excluding February due to the Lunar New Year holiday, the average monthly VAT reduction is estimated at around 1.5 trillion VND for imports and 2.5 trillion VND for domestic sales.
– GDP growth rate in Q1/2024 is estimated to increase by 5.66% compared to the same period last year, higher than the growth rates in Q1 of 2020-2023.
– If the 2% VAT reduction is implemented in the last 6 months of 2024 as per the National Assembly’s resolution, the estimated reduction in state budget revenue is around 24 trillion VND (about 4 trillion VND per month, with 2.5 trillion VND from domestic sales and 1.5 trillion VND from imports).
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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