Proposal to reduce VAT on gasoline, washing machines, microwave ovens...

On May 13, at the 9th session of the 15th National Assembly, the Government proposed expanding the 2% VAT reduction on gasoline, washing machines, and microwave ovens and extending this preferential policy until the end of 2026.

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.

Resolution maintains the goods and services subject to 2% VAT reduction according to Resolution No. 43/2022/QH15.

Minister of Finance Nguyen Van Thang

Compared to previous VAT reductions, the Government has proposed to expand the subjects eligible for tax rate reduction this time. In particular, some groups of goods and services are added, including information technology products and services such as washing machines, microwave ovens, data processing services, rental and related activities, and information portals.

According to the drafting agency, although gasoline is subject to special consumption tax and oil is a refined petroleum product, these are important commodities for many manufacturing and business sectors as well as people's lives. Therefore, 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.

The Chairman of the National Assembly's Economic and Financial Committee presented the audit report.

Examining the Government's Proposal, Chairman of the National Assembly's Economic Committee Phan Van Mai affirmed: The majority of opinions agree with the Government's proposal and believe that expanding the scope of subjects eligible for VAT reduction is necessary to contribute to supporting businesses, stabilizing the macro environment to promote economic growth in the context of the current difficult economy.

However, it is recommended that the Government have effective solutions to ensure that difficulties and obstacles in policy implementation are overcome because there are still goods and sectors that are excluded and not subject to tax reduction, ensuring that the target is easy to achieve and creating convenience for taxpayers.

At the same time, it is necessary to assess more carefully the impact on state budget revenue, ensure the implementation of tax reduction policies associated with the goals of medium-term fiscal stability and public debt safety, and ensure consistency with other tax policies such as environmental protection tax, special consumption tax, etc.

According to Mr. Mai, there are suggestions to review and consider some items affected by the trade war and the US's reciprocal tax policy (if the tax has not been reduced) to help support businesses operating in this field.

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

Source: https://baodaknong.vn/de-xuat-giam-thue-vat-voi-xang-dau-may-giat-lo-vi-song-den-het-nam-2026-252427.html