Reducing value added tax will contribute to reducing the cost of goods and services.

Presenting the Report at the meeting, Deputy Minister of Finance Cao Anh Tuan said that the National Assembly's Resolution project on reducing value added tax was developed to stimulate consumption, in line with the current economic context, thereby supporting people and businesses, promoting production and business activities, tourism, and domestic consumption to contribute back to the state budget as well as the economy to implement the 5-year socio-economic development plan for the period 2021 - 2025, the annual socio-economic development plan, the economic restructuring plan for the period 2021 - 2025, creating momentum for economic growth in the period 2026 - 2030.

Overview of the meeting.

Accordingly, value added tax includes 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 on goods and services subject to a tax rate of 10% will be reduced.

In the group of goods and services subject to a 10% VAT rate: Reduce the VAT rate by 2% for goods and services serving production, business, tourism , and consumption to support increased purchasing power, stimulate domestic consumption and tourism. Do not reduce VAT for goods that are mineral resources, except for special goods that make an important contribution to production and business. Do not reduce VAT for goods and services subject to special consumption tax, except for gasoline.

Deputy Minister of Finance Cao Anh Tuan presented the Report.

Assessing the impact of the draft resolution, Deputy Minister of Finance 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 equivalent to 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).

Regarding the impact on economic growth, 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.

Examining this content, Chairman of the Economic and Financial Committee Phan Van Mai said that many opinions in the Standing Committee of the Committee believe that expanding the scope of subjects eligible for value added tax reduction is necessary to contribute to supporting businesses, stabilizing the macro environment to promote economic growth in the context of the current difficult economy.

However, opinions suggest that the Government has effective solutions to ensure overcoming difficulties and obstacles in implementing the policy because there are still goods and sectors that are excluded, not subject to tax reduction, easy-to-achieve targets and create convenience for taxpayers. At the same time, it is necessary to more carefully assess the impact on state budget revenue, the implementation of tax reduction policies associated with the goal of medium-term fiscal stability and public debt safety, consistent with other tax policies such as environmental protection tax, special consumption tax, etc.

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

Regarding the policy application period, the Government proposed a VAT reduction period for the last 6 months of 2025 and 2026. The majority of opinions agreed with the Government's proposal, aiming to create favorable conditions for businesses to proactively plan production and business, contributing to supporting economic growth.

Some opinions say that the implementation of the policy of reducing value added tax in the past has not really had a clear impact, affecting the stability and effectiveness of the Law on Value Added Tax (the application date of the separate Resolution on reducing the value added tax rate by 2% and the application date of the Law on Value Added Tax just passed by the National Assembly at the 8th Session are both from July 1, 2025). Therefore, it is recommended to consider, if necessary, extending the policy implementation period only until the end of 2025 and promulgating it in the General Resolution of the Session.

Discussing at the meeting, Vice Chairman of the Law and Justice Committee Nguyen Manh Cuong said that the content of Article 1 in the draft Resolution not only stipulates the scope of application, but also stipulates the tax reduction level and the time of tax reduction application. If the name is the scope of application, it does not cover all the content of the law.

Therefore, the delegate proposed to name Article 1 as “Reduction level, scope of application, and duration of application of value added tax” or “Value added tax reduction policy”. In addition, the delegate said that the provision in Clause 1, Article 1 of the draft Resolution is concise but unclear, and needs to be rephrased to be coherent and easy to understand.

Concluding this content, Vice Chairman of the National Assembly Nguyen Duc Hai stated that the National Assembly Standing Committee agreed to submit to the National Assembly for consideration and decision on reducing value-added tax for the last 6 months of 2025 and the whole year of 2026 to stimulate consumption, respond to the current complex fluctuations of trade and the world economy, while promoting production and business, creating jobs, increasing income, and creating momentum for growth.

The Vice Chairman of the National Assembly requested the Government to take into account the opinions of the National Assembly Standing Committee and the opinions of the examining agency to complete the dossier and documents to ensure persuasiveness for submission to the National Assembly for consideration and decision. At the same time, the Government needs to organize the implementation of policies to ensure the set goals, avoiding shortcomings and obstacles in the implementation process.

Theocand.com.vn

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