Government proposes to reduce 2% VAT on gasoline

On the morning of April 23, continuing the 44th session, the National Assembly Standing Committee gave opinions on the draft Resolution of the National Assembly on VAT reduction for the last 6 months of 2025 and 2026.

Vice Chairman Nguyen Duc Hai chaired the meeting. Photo: media.quochoi.vn

The draft resolution stated that the reduction of value-added tax aims to contribute to creating momentum for economic development, supporting people and businesses, promoting production, business, tourism and domestic consumption. Therefore, in 2025 and 2026, it is necessary to continue implementing the VAT reduction policy.

On this basis, the Government proposes to reduce the VAT rate by 2% for groups of goods and services currently subject to a tax rate of 10% (to 8%), excluding some groups. The following 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 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).

The Government assesses that 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 2026.

For people and businesses, a 2% reduction in VAT will directly reduce people's costs in consuming goods and services, while helping businesses reduce production costs, lower product prices, and increase the competitiveness of their products.

Reporting on the issue, Chairman of the National Assembly's 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 2% VAT rate reduction policy as recommended by the Government.

The National Assembly has decided on the proposals for the Government to organize implementation and take responsibility for ensuring revenue collection tasks and the ability to balance the budget within the scope of the state budget deficit in 2025.

Deputy Prime Minister Ho Duc Phoc speaks at the meeting. Photo: media.quochoi.vn

Speaking at the meeting, regarding concerns that this policy may affect the assurance of revenue and budget deficit estimates for 2025 as well as the development of the budget for 2026, Deputy Prime Minister Ho Duc Phoc said that the Government will direct the Ministry of Finance to have solutions on state budget collection methods to ensure the 2025 fiscal year.

“This year is the year that budget expenditures will increase. To streamline the apparatus, incomplete statistics will spend about 170 trillion VND to pay benefits and policies for officials who quit their jobs and retire early; spend about 30 trillion VND to reduce tuition fees; and at the same time implement a number of other policies,” said the Deputy Prime Minister.

Concluding the meeting, Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee agreed to submit to the National Assembly a VAT reduction for the last 6 months of 2025 and 2026 to stimulate domestic consumption, contributing significantly to production and business.

Source: https://hanoimoi.vn/chinh-phu-de-xuat-giam-2-thue-vat-doi-voi-xang-700048.html