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Thursday, July 25, 2024

NA approves extension of VAT cut until year-end

The Saigon Times

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HCMC – The National Assembly (NA) has approved an extension of the two-percentage-point reduction in value-added tax (VAT) for certain goods and services until December 31 this year.

Today morning, June 29, nearly 95% of NA deputies present at the ongoing seventh sitting of the legislature voted for a resolution to this effect. The decision extends the 8% VAT rate until the end of this year.

The two-percentage-point VAT reduction continues to apply to specific groups of goods and services. However, sectors such as real estate, securities, banking, telecommunications, information technology, coal, chemical products, and goods and services subject to special consumption tax remain excluded from this VAT cut.

The VAT reduction is expected to result in a decrease of VND24 trillion in State budget revenue in the latter half of the year, equivalent to VND4 trillion per month. Overall, the budget is projected to decline by nearly VND47.5 trillion for the entire year.

The NA has tasked the Government with ensuring revenue sources to avoid affecting budget estimates, expenditures, budget overspending, and urgent arising needs when implementing this tax reduction.

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