The Government proposes to continue implementing the policy of reducing value added tax.

Vice Chairman of the National Assembly Nguyen Khac Dinh speaks. (Photo: Doan Tan/VNA)

On the morning of April 23, continuing the 44th session, the National Assembly Standing Committee gave opinions on the draft Resolution of the National Assembly on reducing value-added tax for the last 6 months of 2025 and the whole year of 2026.

Presenting the Government's report, Deputy Minister of Finance Cao Anh Tuan said that in order to contribute to creating momentum to promote and develop the economy, support people and businesses, promote production, business, tourism and domestic consumption in 2025 and 2026, it is necessary to continue implementing the policy of reducing value added tax.

The Government proposes to reduce the value added tax rate by 2% for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for the following groups of goods and services: 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). The application period is from July 1, 2025 to December 31, 2026.

National Assembly Chairman Tran Thanh Man speaks. (Photo: Doan Tan/VNA)

Regarding the impact on state budget revenue, the Deputy Minister of Finance said that the expected decrease in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about 121.74 trillion VND (of which the last 6 months of 2025 will decrease by about 39.54 trillion VND, and in 2026, it will decrease by about 82.2 trillion VND).

Reducing value added tax will contribute to reducing the cost of goods and services, thereby promoting production and business and creating more jobs for workers, contributing to stabilizing the macro economy and economic growth in the last 6 months of 2025 and the whole year of 2026.

For people and businesses, a 2% reduction in value added tax will directly reduce people's costs in consuming goods and services. At the same time, it will help businesses reduce production costs, lower product prices, and increase the competitiveness of their products.

Reporting on this content, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the majority of opinions in the Standing Committee of this Committee agreed with the necessity of issuing a Resolution to continue applying the policy of reducing value-added tax for the last 6 months of 2025 and the whole year of 2026. The Standing Committee of the Committee also agreed with the proposal to expand the subjects eligible for value-added tax reduction for a number of groups of goods and services as proposed by the Government.

There are suggestions to review and consider some products affected by the trade war and the US's reciprocal tax policy (if tax has not been reduced), to help support businesses operating in this field.

There are opinions that there are only 3 groups of goods and services proposed not to have tax reduction, so it is recommended that the Ministry of Finance review and, in case the difference in the 2% VAT collection for these groups of goods and services is not too large, consider reducing tax for all goods and services to ensure fairness for taxable entities and taxpayers.

Reporting further at the meeting, Deputy Prime Minister Ho Duc Phoc informed that in the last 6 months of the year, the economy will be affected by the US tariff policy, and it is necessary to continue reducing taxes for businesses with stable production and business conditions and increased competitiveness.

Deputy Prime Minister Ho Duc Phoc speaks. (Photo: Doan Tan/VNA)

Regarding value added tax, the Deputy Prime Minister said that Vietnam's VAT is lower than other countries, only 10%. Meanwhile, in the past 4 years, it has decreased by 2%, from 10% to 8%. This is a priority for businesses, ensuring that businesses can recover after the pandemic.

“This July, the guidance on the 2026 budget and the financial plan, public debt for the next term will be fully reported on the forecast of spending capacity. This year, to pay salaries for severance pay and streamline the apparatus, we have used the salary fund that has been accumulated for a long time, as well as from the budget. But next year, we will report on the collection policy and taxes to balance the next 5 years and 2026,” said Deputy Prime Minister Ho Duc Phoc.

Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai stated that the National Assembly Standing Committee agreed with the Government's proposal to promote production and business, and requested the Government to complete the dossier to increase persuasiveness and submit it to the National Assembly for decision at the upcoming 9th Session./.

According to VNA

Source: https://baothanhhoa.vn/chinh-phu-de-xuat-tiep-tuc-thuc-hien-chinh-sach-giam-thue-gia-tri-gia-tang-246574.htm