Seeking opinions on the resolution to reduce value added tax by 2% for 6 months

Accordingly, the draft stipulates a 2% reduction in value added tax for groups of goods and services currently subject to a 10% tax rate, except for some groups of goods and services.

The groups of goods that are not eligible for VAT reduction are telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mineral products (excluding coal mining), coke, refined petroleum, and chemical products.

According to the Ministry of Finance, the implementation of the VAT reduction policy under Resolution No. 43/2022/QH15 has supported businesses and people with about VND 44.5 trillion in 11 months of application, reducing an average of about VND 4,000 billion per month.

With the solution to reduce VAT for the subjects as implemented in 2022 according to Resolution No. 43/2022/QH15, if applied in the last 6 months of the year, the expected reduction in state budget revenue is equivalent to about 24 trillion VND (for state budget revenue in 2023, it is expected to decrease by 20 trillion VND because the VAT payable for December 2023 will be paid in January 2024).

The draft Decree sets the effective date of this policy as July 1, 2023 to December 31, 2023.

The Government agrees in principle to reduce value added tax from 10% to 8% . Deputy Prime Minister Le Minh Khai agrees in principle to the Ministry of Finance reporting to the Government to submit to the National Assembly and the National Assembly Standing Committee for consideration and permission to develop and promulgate a National Assembly Resolution on reducing value added tax.

Source: https://vietnamnet.vn/lay-y-kien-nghi-dinh-giam-thue-gia-tri-gia-tang-2-trong-6-thang-2154788.html