Official proposal to reduce VAT by 2% until the end of 2026

The Government submitted to the National Assembly a proposal to expand the 2% VAT reduction on gasoline, washing machines, and microwave ovens and extend this preferential policy until the end of 2026.

Reduce VAT on gasoline, washing machines, microwave ovens

On the morning of May 13, continuing the 9th Session, Minister of Finance Nguyen Van Thang presented the Notice on the National Assembly's draft Resolution on reducing value added tax (VAT).

This Resolution adjusts the group of goods and services currently subject to a tax rate of 10%, 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) in the last 6 months of 2025 and the whole year of 2026.

The Resolution maintains the goods and services subject to a 2% VAT reduction according to Resolution No. 43.

Minister of Finance Nguyen Van Thang

At the same time, the draft Resolution expands the subjects eligible for a 2% VAT rate reduction for a number of groups of goods and services that are not eligible for VAT reduction under Resolution No. 43, including:

Information technology products and services (such as washing machines, microwave ovens, data processing services, rentals and related activities, information portals, etc.), prefabricated metal products (such as barrels, tanks and metal containers, boilers, etc.). According to Mr. Thang, these are goods and services serving the direct consumption purposes of the people.

Coke, refined petroleum (such as coke, fuel oil and gasoline, lubricating grease, etc.), chemical products (such as fertilizers and nitrogen compounds, plastics and synthetic rubber in primary form, etc.), coal at the import stage and coal sold at the commercial stage (domestic coal has been reduced according to Resolution No. 43).

These are goods used in the production process of input materials to serve the purpose of producing consumer goods directly for the people.

Regarding gasoline and oil products, according to the Minister of Finance, although gasoline products are subject to special consumption tax and oil products are refined petroleum products, these are important products for many production and business sectors as well as people's lives, and the increase or decrease in gasoline and oil prices in general will directly affect domestic production, consumption and macroeconomic stability.

According to Minister Nguyen Van Thang, reducing VAT will reduce State budget revenue but also stimulate production and promote business activities, thereby contributing to creating more revenue for the budget.

The estimated reduction in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is equivalent to about 121,740 billion VND. Of which, the reduction in the last 6 months of 2025 is about 39,540 billion VND, and in 2026 it is about 82,200 billion VND.

In addition, 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 the whole year of 2026.

Regarding the people, Mr. Thang emphasized that this is the group that will directly benefit from this policy. The 2% reduction in VAT will directly contribute to reducing people's costs in consuming goods and services serving people's lives.

For businesses, a 2% reduction in VAT will contribute to reducing production costs and lowering product prices through businesses that produce and trade goods and provide services that are entitled to a VAT reduction, leading to a reduction in the selling price of goods and services for consumers, thereby helping businesses increase their competitiveness, increase consumption of goods and services, and expand production and business, contributing to creating more jobs for workers.

Proposal to reduce tax on all groups of goods

During the review, Chairman of the Economic and Financial Committee Phan Van Mai said that the majority of opinions in the Committee agreed with the necessity of issuing a Resolution to continue applying the VAT reduction policy for the last 6 months of 2025 and the whole year of 2026 as proposed by the Government to support businesses to promote production and business, associated with maintaining macroeconomic stability.

"In the context that the domestic economy is facing many difficulties and challenges; the world economy has many unpredictable fluctuations, continuing to issue this policy can be seen as a measure aimed at domestic consumption to promote growth, contributing to achieving the set growth target of 8%," Mr. Mai stated.

There is a proposal to reduce taxes on all goods and services to ensure fairness.

However, the newspaper said that there were suggestions to review and consider some products affected by the trade war and the US's reciprocal tax policy.

There are opinions that there are only 3 groups of goods and services proposed not to have tax reduction, so it is recommended that the Ministry of Finance review and, in case the difference in VAT collection of 2% for these groups of goods and services is not too large, consider reducing tax for all goods and services to ensure fairness.

Some opinions say that it is necessary to carefully consider expanding the scope of tax reduction. In the current context, when the economy is developing and growing steadily, the proposal to expand the scope of tax reduction is not really appropriate.

Source: https://baoquangninh.vn/chinh-thuc-de-xuat-giam-2-thue-vat-den-het-nam-2026-3357820.html