Expected to continue reducing VAT in the last 6 months of 2025 and the whole year of 2026

Vice Chairman of the National Assembly Nguyen Duc Hai chaired the discussion session.

Briefly presenting the draft Resolution, Deputy Minister of Finance Cao Anh Tuan said that 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: VAT has goods and services subject to VAT and not subject to VAT (there are goods and services not subject to VAT, 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 is applied to goods and services subject to a tax rate of 10%.

In the group of goods and services subject to the VAT rate of 10%, the subjects eligible for a 2% reduction in VAT rate are expanded to 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, 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 VAT reduction for goods that are mineral resources, except for special goods that contribute significantly to production and business such as: Mineral products (except coal), metal products.

No VAT reduction for goods and services subject to special consumption tax (SCT), except for gasoline.

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

Also according to Mr. Cao Anh Tuan, the basic content of the draft Resolution is to reduce 2% of VAT rate for groups of goods and services currently applying 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).

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

Regarding the impact assessment of the draft Resolution, Mr. Cao Anh Tuan said that the expected reduction 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).

At the same time, reducing VAT 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 VAT 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.

Chairman of the Economic and Financial Committee Phan Van Mai presented the audit report.

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 Committee basically agreed with the proposal to continue allowing the application of the policy of reducing the VAT rate by 2% as proposed by the Government.

At the same time, the Government is requested to study and absorb the opinions of the reviewers to complete the draft Resolution; organize the implementation and take responsibility for ensuring the revenue task and the ability to balance the budget within the scope of the 2025 State budget deficit decided by the National Assembly.

Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration the reduction of VAT for the last 6 months of 2025 and the whole year of 2026 according to the Government's proposal to stimulate consumption, respond to fluctuations in the world economy, while promoting production and business, creating jobs, creating growth momentum, contributing to achieving the growth target of 8% or more in 2025.

Anh Tho

Source: https://baochinhphu.vn/du-kien-tiep-tuc-giam-thue-gtgt-6-thang-cuoi-nam-2025-va-ca-nam-2026-102250423112735908.htm