MoF Proposes VAT Reduction to Boost Economy, Seeks Public Feedback on Draft Plan

• MoF seeks public feedback on a draft resolution for a 2 percent VAT reduction
• Proposal extends VAT reduction from July 1, 2025, to end of 2026 for certain goods and services
• VAT on petroleum products to be reduced by 2 percent from July 1 to end of 2026
• Key sectors like telecommunications, finance, and real estate are excluded
• Special consumption tax items, except gasoline, are not covered
• Eligible items for VAT reduction include washing machines, microwaves, and prefabricated metal products
• Gasoline and oil proposed for tax cuts due to their economic importance
• VAT reduction aims to lower costs, boost production, and support job creation
• Expected to directly benefit consumers by reducing costs of essential goods and services
• Forecasted decrease in State budget revenue of over VNĐ121.74 trillion
• VAT reduction policy has provided VNĐ123.8 trillion in support since 2022
• Recent tax cuts estimated at VNĐ8.3 trillion in the past two months

Source: vietnamnews.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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