Ha Tinh reduced 483 billion VND in VAT in the first 6 months of the year
Since the beginning of 2022, in order to recover and develop the socio -economy after the COVID-19 pandemic, the National Assembly has resolved 5 times to reduce 2% VAT on groups of goods and services currently subject to 10% VAT (except for some groups of goods and services such as telecommunications, financial activities, banking, securities, insurance, real estate business, etc.). This policy has had a positive impact on both production, circulation and consumption activities; contributing to reducing both input and output costs of economic activities.
In the most recent time (the 5th time - PV), implementing Decree No. 80/2024/ND-CP of the Government, from January 1, 2025 to present, the Tax Department of Region XI (including 3 provinces: Ha Tinh, Quang Binh , Quang Tri) has reduced VAT from 10% to 8% with a total amount of more than 830 billion VND. In Ha Tinh alone, the Tax Department of Region XI has reduced VAT from 10% to 8% for thousands of organizations and enterprises with a total reduction of about 483 billion VND.
Some businesses will receive large VAT reductions in 2025, such as: Ha Tinh Oil and Gas Power Company (reduction of more than 63 billion VND); Ha Tinh Power Company (reduction of more than 21.8 billion VND); VG High-Tech Energy Solutions Company Limited (reduction of more than 18 billion VND); VinES Ha Tinh Energy Solutions Joint Stock Company (reduction of more than 10 billion VND)...
Mr. Ha Huy Hai - Head of the Department of Business, Budgeting and Legal Affairs (Tax Department of Region XI) said: “The 10% VAT is the most common tax at present, so when it is reduced, the majority of people and businesses will benefit from the policy. This policy reduces the state budget revenue in VAT but also directly reduces the cost of products, thereby contributing to the circulation of goods; promoting production and business, thereby contributing to creating more revenue for the state budget. From 2022 to now, the overall state budget revenue of the following year has still increased compared to the previous year. This is the positive impact of the tax reduction that has supported production and business”.
Policy expected to last until end of 2026
By June 30, 2025, Decree No. 80/2024/ND-CP of the Government on reducing VAT from 10% to 8% will expire. Therefore, most recently, at the 9th Session held in mid-May, the National Assembly discussed a draft resolution regulating a 2% reduction in VAT for groups of goods and services currently applying a tax rate of 10%. Accordingly, National Assembly deputies proposed that the policy application period will last from July 1, 2025 to December 31, 2026.
Mr. Nguyen Dinh Nam - Deputy General Director of Thanh Huy Group Joint Stock Company (Cam Xuyen) shared: “In previous times, the policy only lasted 6 months or 1 year, but this time, the National Assembly has proposed a draft with an application period of 1.5 years. The extended VAT reduction period will help businesses plan strategies for a longer development roadmap. For example, in 2025, the company will receive a reduction of more than 1.2 billion VND in VAT in input costs when purchasing raw materials, fuels, and materials for construction. This is truly a tonic to help businesses circulate capital to develop and expand production and business”.
Officers of the Tax Department of Region XI support businesses to reduce taxes right on the declaration form.
Not only businesses, but also Ha Tinh people expect the Government to continue to reduce VAT from 10% to 8% until the end of 2026. Notably, people proposed that the Government study and consider expanding the list of goods and services subject to VAT reduction because according to previous decrees, many goods and services are subject to a VAT rate of 10% but are still not eligible for reduction.
Ms. Pham Thi Hiep Dinh - Deputy Director of Co.opmart Ha Tinh Supermarket said: "By reducing VAT from 10% to 8%, the Government has actively supported both manufacturing enterprises and consumers. However, the purchasing power of goods in general has not recovered compared to the pre-pandemic period. Therefore, people and businesses expect the State to continue to provide long-term support, expanding the groups of goods with reduced VAT to help people buy more goods and services with the same amount of money and help businesses expand production and business".
VAT is an indirect tax, included in the selling price of products, goods and services. Therefore, a 2% reduction in VAT affects both production and consumption. In the context that the whole country is implementing the arrangement of 2-level government, moving towards Party congresses at all levels, the proposal to reduce VAT by 2% is even more important in the socio-economic development roadmap for the period 2025-2030. Accordingly, the proposal to reduce VAT by 2% until the end of 2026 will be a long-term "tonic" to stimulate production and business activities, and is an encouragement from the Party and State to people and businesses when embarking on the implementation of the socio-economic development plan for the coming period.
Source: https://baohatinh.vn/doanh-nghiep-ky-vong-chinh-phu-giam-2-thue-vat-den-het-nam-2026-post289846.html
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