HCMC – The National Assembly Standing Committee approved a proposal to extend the value-added tax (VAT) reduction yesterday, November 26, and instructed the Government to finalize a report for submission to the National Assembly, according to the Vietnam News Agency.
The proposed measure aims to boost the economy by stimulating consumption, supporting business recovery, and increasing budget revenues to achieve socio-economic development goals.
Under the proposal, the VAT rate for most goods and services would be reduced from 10% to 8%, with exceptions for sectors such as telecommunications, finance, real estate, and heavy industries. The policy would take effect from January 1 to June 30, 2025.
Speaking at the session, Le Quang Manh, chairman of the National Assembly’s Finance and Budget Committee, emphasized that most members supported the VAT reduction to lower product costs, encourage consumption, and assist both businesses and citizens.
The NA Standing Committee agreed to submit the proposal to the National Assembly for consideration. It also requested the Government to provide additional evaluation details to strengthen the proposal’s rationale and ensure its effectiveness.
The committee further urged the Government to improve forecasting capabilities, develop comprehensive long-term plans, and ensure the effective implementation of the policy. This approach seeks to avoid frequent adjustments that could disrupt economic activities while maintaining stable budget revenues.
