Spending 170 trillion for officials to quit their jobs and retire early when restructuring the apparatus

Deputy Prime Minister Ho Duc Phoc. Photo: quochoi

According to the proposal, the Government proposed to reduce 2% VAT on groups of goods and services currently subject to a tax rate of 10% (to 8%) with the application period from July 1, 2025 to December 31, 2026.

This proposal excludes a number of groups of goods and services such as: telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline).

In particular, expanding the subjects eligible for a 2% VAT reduction on goods and services serving production, business, tourism, and consumption to support increased purchasing power, stimulate domestic consumption and tourism, and special goods that contribute significantly to production and business such as: information technology products and services, prefabricated metal products, coke, refined petroleum, chemical products, imported coal and coal sold in commercial business, gasoline and oil.

Free tuition about 30,000 billion VND

Deputy Prime Minister Ho Duc Phoc said that the estimated tax reduction is 232.04 trillion VND. This year, budget expenditures will increase due to having to pay about 170 trillion VND for officials who quit their jobs or retire before retirement age after streamlining the apparatus; exempting about 30 trillion VND in tuition fees; applying new policies such as health insurance, etc.

According to the Deputy Prime Minister, the VAT reduction demonstrates the Government's priority to support businesses to recover after the pandemic and thrive in the current context of complex trade tax imposition.

“Currently, Vietnam’s VAT rate is less than 50% of that of developing countries. For example, in Europe, VAT is 19-21%. Our VAT rate is only 10%, of which it has been reduced by 2% in the past 4 years to only 8%,” Deputy Prime Minister Ho Duc Phoc stated.

After discussion, the National Assembly Standing Committee agreed to submit to the National Assembly a resolution to reduce value-added tax for the last 6 months of 2025 and the whole year of 2026 as proposed by the Government; requested the drafting unit to absorb comments to complete the dossier and documents to submit to the National Assembly for consideration and decision.

According to vietnamnet.vn

Source: https://baoapbac.vn/kinh-te/202504/chi-170-nghin-ty-cho-can-bo-thoi-viec-nghi-huu-truoc-tuoi-khi-sap-xep-bo-may-1040674/