That is one of the notable contents in the telegram No. 22/CD-TTg dated March 9 issued by Prime Minister Pham Minh Chinh on a number of key tasks and solutions to reduce administrative procedures, improve the business environment, and promote socio-economic development.

In this dispatch, the Prime Minister requested the Ministry of Finance to preside over and coordinate with ministries, agencies and localities to develop a decree extending the deadline for payment of value-added tax (VAT), corporate income tax, personal income tax and land rent in 2025 and a decree extending the deadline for payment of special consumption tax on domestically manufactured and assembled automobiles. The research results must be reported to the Government before March 15, 2025.

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The Prime Minister requested to study and expand the subjects of VAT reduction. Photo: Hoang Ha

In addition, the Ministry of Finance is also assigned to research and propose the expansion of tax reduction subjects and VAT reduction applicable in the last 6 months of 2025 and 2026, and report to the Government before March 15, 2025.

Previously, the Government issued Decree No. 180/2024/ND-CP stipulating the VAT reduction policy according to Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly. Decree 180/2024/ND-CP takes effect from January 1 to June 30, 2025.

Accordingly, the VAT rate will continue to be reduced by 2% for a number of groups of goods and services from January 1, 2025 to June 30, 2025; except for a number of fields such as telecommunications, information technology, finance - banking, insurance, real estate, metals, mining (except coal), refined petroleum, chemicals and products subject to special consumption tax...

In 2024, the Government has reduced VAT in 2 phases (from January 1, 2024 to June 30, 2024 and from July 1, 2024 to December 31, 2024).

The 2% VAT reduction policy has helped reduce the cost of goods and services, thereby supporting businesses and consumers.

However, many opinions say that it is necessary to expand the scope of application and extend the tax reduction period to support the economy more effectively.

The Ministry of Finance stated the reason for not raising the threshold for VAT to 250 million . The Ministry of Finance did not agree to raise the threshold for value-added tax (VAT) revenue for individuals and business households to 250 million VND or 300 million VND, but maintained the proposal to raise it to 150 million VND.