Government proposes to reduce value added tax until the end of 2026

It is expected to continue to reduce the value added tax rate by 2% for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for some groups of goods and services.

Minister of Finance Nguyen Van Thang. Photo: National Assembly

Today, Minister of Finance Nguyen Van Thang presented at the National Assembly session a summary report of the National Assembly's draft Resolution on reducing value-added tax (VAT).

According to Mr. Nguyen Van Thang, the proposal to expand the applicable subjects and extend the implementation period of the 2% VAT rate reduction policy aims to institutionalize the socio -economic development target in 2025 with a growth target of 8% or more, contributing to creating a solid foundation to achieve double-digit growth in the period 2026 - 2030.

From 2022 to the first 6 months of this year, the National Assembly has resolved to reduce the VAT rate by 2% for groups of goods and services currently applying the rate of 10% (to 8%), except for some groups of goods and services.

The reduction of VAT along with other support solutions on taxes, fees and charges is creating great conditions to help businesses reduce production costs, increase profits and increase the ability to stimulate demand.

Regarding the proposed tax reduction principle, the draft resolution proposes to reduce the VAT rate by 2% for groups of goods and services currently subject to 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.

The Minister of Finance assessed that the tax reduction is expected to reduce state budget revenue in the last 6 months of 2025 and the whole year of 2026 by about 121.74 trillion VND (in the last 6 months of this year, it will decrease by about 39.54 trillion VND, in 2026, it will decrease by about 82.2 trillion VND).

However, 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 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 reduce production costs, lower prices, thereby improving product competitiveness.

In the project appraisal report, the National Assembly 's Economic and Financial Committee basically agreed with the proposal to continue allowing the application of the 2% VAT rate reduction policy as proposed by the Government and requested the Government to study and absorb appraisal opinions to complete the draft Resolution.

At the same time, the Committee proposed implementing the conclusions of the National Assembly Standing Committee in organizing policy implementation, ensuring the set goals, and avoiding difficulties and obstacles.

VN (according to Vietnamnet)

Source: https://baohaiduong.vn/chinh-phu-de-nghi-giam-thue-gia-tri-gia-tang-den-het-nam-2026-411461.html