- The government seeks to expand VAT rate beneficiaries until late next year to aid prosperity.
- A proposal was presented to extend the 8 percent VAT rate on certain goods and services until the end of 2026.
- The proposal includes a 2 percent VAT decrease for some goods and services currently at a 10 percent rate.
- Affected items include IT products, refined petroleum, chemical products, and imported coal.
- The policy aims to reduce state budget revenue but boost production and business activities.
- The expected budget revenue reduction is $4.87 billion from July 2025 to the end of 2026.
- The VAT reduction is intended to lower prices, promote economic growth, and create jobs.
- Individuals and businesses will benefit from reduced costs and increased competitiveness.
- If approved, this will be the sixth implementation of the initiative since 2022.
- The proposal aligns with Vietnam’s international commitments and treaties.
Source: vir.com.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.
