Proposal to continue reducing 2% value added tax until the end of 2026

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 (VAT) for the last 6 months of 2025 and the whole year of 2026.

No VAT reduction for goods and services subject to special consumption tax

Briefly presenting this content, Deputy Minister of Finance Cao Anh Tuan stated 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 activities in 2025 and 2026, it is necessary to continue implementing the policy of reducing value added tax.

Deputy Minister of Finance Cao Anh Tuan reports at the meeting. (Photo: DUY LINH)

According to the Deputy Minister, the VAT reduction plan in this draft Resolution has changed content compared to the provisions in previous National Assembly Resolutions.

Specifically, in principle, the proposed tax reduction and value added tax reduction include goods and services subject to value added tax and not subject to value added tax (there are goods and services not subject to value added tax, there are exported goods and services subject to a tax rate of 0%, there are goods and services subject to a tax rate of 5% and there are goods and services subject to a tax rate of 10%), then only the tax reduction will be applied to goods and services subject to a tax rate of 10%.

In the group of goods and services subject to a 10% value added tax rate, the subjects eligible for a 2% reduction in value added tax rate for goods and services serving production, business, tourism , and consumption are expanded 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, products from precast metals, coke, refined petroleum, chemical products, coal at the import stage and coal sold at the commercial stage, gasoline, and oil.

No reduction in value added tax on goods that are mineral resources, except for special goods that make an important contribution to production and business such as mineral products (except coal) and metal products.

No reduction in value added tax on goods and services subject to special consumption tax, except for gasoline.

Maintain services that are not eligible for value added tax reduction according to regulations in previous National Assembly Resolutions such as: telecommunications, financial activities, banking, securities, insurance, and real estate business.

Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting. (Photo: DUY LINH)

The draft Resolution stipulates a 2% reduction in value added tax rates for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for a number of 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).

Applicable period from July 1, 2025 to December 31, 2026.

The Government is assigned to guide the reduction of value-added tax rates and organize the implementation of this policy to ensure transparency and efficiency.

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).

Agreed to submit to the National Assembly for consideration and decision to continue reducing VAT

Presenting the report on the review of the draft Resolution, Chairman of the Economic and Financial Committee Phan Van Mai said that the majority of opinions in the Standing Committee of the Economic and Financial Committee agreed with the necessity of issuing the Resolution at the request of the Government to support enterprises in promoting production and business, associated with maintaining macroeconomic stability.

Chairman of the Economic and Financial Committee Phan Van Mai speaks. (Photo: DUY LINH)

In the context of the domestic economy facing many difficulties and challenges; the world economy has many unstable fluctuations, affecting the ability to ensure export targets..., continuing to issue this policy can be seen as a measure aimed at domestic consumption to promote growth, contributing to achieving the set growth target of 8%.

However, some opinions say that continuing to propose the issuance of policies is not really appropriate and it is difficult to achieve the set goal of stimulating consumption because the policy's ability to stimulate demand has been saturated after a long period of implementation.

Some argue that the continuous extension and prolongation of policy implementation creates a bad precedent, making tax policy unstable and inconsistent, especially in the context of the Law on Value Added Tax that has been promulgated by the National Assembly and takes effect from July 1, 2025. In addition, the narrowing of fiscal and policy space will reduce the ability to respond to more serious economic crises in the future...

Through discussion, the members of the National Assembly Standing Committee agreed to submit to the National Assembly a proposal to reduce value-added tax for the last 6 months of 2025 and the whole year of 2026 to stimulate consumption and respond to the complex fluctuations of the current world economic and trade. At the same time, it will promote production and business development, create jobs, contribute to achieving the growth target of 8% or more in 2025 and implement other growth targets next year, bringing the country into a new growth phase.

Concluding this content, Vice Chairman of the National Assembly Nguyen Duc Hai noted that the Government needs to pay attention to implementing policies to ensure the set goals, not to let difficulties and obstacles occur; take responsibility in the process of implementing the collection task, ensuring revenue sources for the estimated expenditure tasks in 2025 and urgent requirements arising, as well as the state budget estimate for 2026... At the same time, he suggested that the Government complete the dossier to increase persuasiveness to submit to the National Assembly for consideration and decision at the upcoming 9th Session.

Source: https://baotuyenquang.com.vn/de-xuat-tiep-tuc-giam-2-thue-gia-tri-gia-tang-toi-het-nam-2026!-210610.html