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Sunday, July 21, 2024

National Assembly Standing Committee okays VAT cut extension

The Saigon Times

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

Chaired by NA Deputy Chairman Nguyen Duc Hai on June 13, the committee endorsed the Government’s proposal to maintain the tax cut, reducing VAT from 10% to 8% for specific items.

Sectors such as telecommunications, information technology, finance, banking, securities, insurance, real estate, metal production, mining (excluding coal), coke production, refined petroleum, chemicals, and those subject to special consumption tax are excluded from the reduction.

Deputy Chairwoman Nguyen Thi Thanh highlighted that the economy is still recovering and faces challenges. She noted that the VAT reduction would stimulate consumer spending and support the recovery of production and business activities, thereby helping businesses maintain and expand operations, contributing to the state budget and economic growth.

NA Chairman Tran Thanh Man reported widespread support among assembly members for extending the tax cut through the year’s end. Deputy Chairman Nguyen Duc Hai confirmed that the committee had reached a consensus to present the proposal to the NA for final approval.

The NA Finance and Budget Committee’s preliminary report showed strong backing for the extension. The policy will be effective from July 1, 2024, to December 31, 2024, and will be included in the overall resolution of the seventh sitting, instead of being addressed in a separate resolution.

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