- Hanoi proposes a 2% VAT reduction on goods and services currently taxed at 10%, lowering it to 8%
- The proposal is to maintain the reduction until December 31, 2026
- Exclusions include telecommunications, financial services, banking, insurance, securities, real estate, metal products, mining (excluding coal), and items with special consumption tax (except petrol)
- Petrol, washing machines, and microwave ovens are added to the list eligible for the reduction
- The reduction is expected to decrease state revenue by approximately 121.74 trillion dong or about US$4.69 billion
- The policy aims to lower prices, support consumer spending, stimulate consumption, and promote business activities
- It is anticipated to create jobs, stabilize the economy, and drive economic growth
- Consumers will benefit from reduced living and consumption costs
- Businesses will benefit from lower product costs, improved competitiveness, and expanded markets
- The majority of National Assembly deputies support the proposal
Source: thestar.com.my
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.
