Proposal to reduce VAT by 2% until the end of 2026 for all items

Reduce taxes to promote production, increase domestic consumption

On the afternoon of May 21, within the framework of the 9th Session, the National Assembly discussed in Groups the draft Resolution of the National Assembly on reducing value-added tax and a number of other draft laws.

Participating in the discussion in Group 2 were National Assembly Deputies from the Ho Chi Minh City National Assembly Delegation. At the meeting, the majority of National Assembly Deputies highly agreed with the necessity of promulgation as well as the key contents proposed in the draft Laws. At the same time, the delegates commented on many specific regulations to continue perfecting the draft Laws to ensure consistency, synchronization and feasibility after promulgation.

The majority of National Assembly deputies agreed with the necessity of issuing a Resolution to continue applying the policy of reducing value-added tax 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.

National Assembly Delegate of Ho Chi Minh City National Assembly Tran Anh Tuan (left). (Photo: VGP).

Contributing opinions to the National Assembly's draft Resolution on reducing value added tax, delegate Tran Anh Tuan said that in the context of unpredictable fluctuations in the world situation, especially the United States applying reciprocal taxes to many countries in the world, Vietnam needs to strengthen its internal strength in production and business; and increase domestic consumption.

Mr. Tran Tuan Anh also said that this also contributes to achieving the economic growth target of 8% or more and moving towards double-digit growth.

According to delegate Tran Anh Tuan, the implementation of the National Assembly's Resolution on value-added tax reduction in recent times has shown that many businesses have been supported to develop production and business, create more jobs for workers, and contribute to promoting consumption of goods. However, up to now, we have not had an assessment of how value-added tax reduction affects consumption of goods in order to have further proposals and recommendations for the implementation of tax policies.

In addition, delegate Tran Anh Tuan also proposed to continue implementing the National Assembly's Resolution on reducing value-added tax until the end of 2026. At the same time, the delegate suggested that tax reduction should not only be applied to a number of goods but should be expanded to all goods.

Tax reduction but budget still increases, need to expand to all items

Commenting on the implementation of the National Assembly's Resolution on reducing value added tax in the past time, delegate Tran Hoang Ngan said that there are opinions that extending the 2% reduction in value added tax rate will cause a loss of revenue to the State budget. However, through the actual implementation, the tax reduction shows that the budget revenue is still increasing.

National Assembly Delegate Tran Hoang Ngan. (Photo: VGP)

According to delegate Tran Hoang Ngan, to achieve the GDP growth target of 8% or more in 2025, total wholesale, retail and consumer revenue must grow. Therefore, the 2% reduction in value added tax rate should not only be applied to a number of goods, promoting wholesale and retail, but should be applied to all goods, including technology and telecommunications products...

Sharing the view of continuing to implement the National Assembly Resolution on reducing value added tax until the end of 2026, delegate Do Duc Hien emphasized that this is a Resolution that has been implemented, not a new policy, so it is not a pilot. Therefore, it is necessary to clearly define the nature to ensure consistency in the implementation and promulgation of legal documents.

Delegate Do Duc Hien also agreed with the proposal to issue a separate resolution of the National Assembly on reducing value added tax. He analyzed that this tax reduction was proposed by the Government to be applied for a longer period (18 months) and the scope of goods and services was wider than the previous tax reductions. Therefore, issuing a separate Resolution may be appropriate to ensure legality.

National Assembly Delegate Do Duc Hien. (Photo: VGP)

However, Mr. Do Duc Hien noted that if issued in the form of an independent Resolution, it is necessary to consider the name of the Resolution to comply with the provisions of Point a, Clause 2, Article 10 of the Law on Promulgation of Legal Documents.

During the session, National Assembly deputies contributed their opinions on a number of other important issues such as: investment policy for the Quy Nhon - Pleiku expressway construction project; adjustment of investment policy for the Bien Hoa - Vung Tau expressway project phase 1; and the draft Resolution of the National Assembly on piloting the People's Procuracy to initiate civil lawsuits, in order to protect the civil rights of vulnerable groups or protect public interests.

According to chinhphu.vn

Source: https://baophapluat.vn/de-xuat-giam-thue-vat-2-den-het-nam-2026-cho-tat-ca-mat-hang-post549304.html