Government Proposes Expanded VAT Rate Reduction to Boost Economy and Support More Beneficiaries

• 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.

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