Government Extends VAT Reduction Through End of Next Year

• Vietnam’s VAT cut excludes key sectors such as telecommunications, banking, insurance, real estate, mining (excluding coal), and goods under special consumption tax, maintaining revenue protection for high-value industries.

• The ongoing 2% VAT reduction, aimed at post-COVID recovery, is projected to reduce state budget revenues by VND39.54 trillion in H2 2025 and VND82.2 trillion in 2026.

Source: baochinhphu.vn