Proposal to continue reducing VAT by 2% until the end of 2024

The Government has just submitted a document to the National Assembly for consideration and permission to continue implementing the policy of reducing 2% value-added tax (VAT) rates for a number of groups of goods and services currently subject to a 10% VAT rate in the last 6 months of 2024.

The Government submitted to the National Assembly permission to continue reducing VAT by 2% until the end of 2024. Illustration photo: NK

Based on the assessment of the results achieved by the 2% VAT reduction solution according to Resolution No. 110/2023/QH15, the Government submitted to the National Assembly for consideration and permission to continue implementing the policy of reducing 2% VAT rate for a number of groups of goods and services currently applying a 10% VAT rate in the last 6 months of 2024 (from July 1 to December 31, 2024) and assigned the Government to organize the implementation, according to Baochinhphu.vn,

According to calculations, applying the policy of reducing VAT rate by 2% for the last 6 months of 2024 will reduce revenue by about 24,000 billion VND. The average tax reduction is about 4,000 billion VND/month; of which the reduction in domestic revenue is expected to be 2,500 billion VND/month and the reduction in import revenue is about 1,500 billion VND/month.

In the first 3 months of 2024, the VAT amount reduced according to Resolution No. 110/2023/QH15 is about 11,488 billion VND. Thus, in the first 6 months of 2024, the expected revenue reduction is about 23,488 billion VND. If the VAT reduction policy continues to be implemented for the last 6 months of the year, the expected revenue reduction for the whole year of 2024 is about 47,488 billion VND.

( According to thesaigontimes.vn )

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