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| Reducing VAT will stimulate both production and trading enterprises and market consumption demand. Illustrative photo |
Discussing at the National Assembly, many delegates agreed to implement it to support economic recovery, promote consumption and create conditions for businesses to overcome difficulties, and this is something that the business community is very interested in.
More than 121 trillion VND in tax revenue was reduced
During the discussion session on the Draft Resolution of the National Assembly on VAT reduction on the afternoon of May 28, the majority of National Assembly deputies expressed their strong agreement with the proposal to continue reducing VAT from 10% to 8% during the period from July 1, 2025 to December 31, 2026, to support economic recovery, promote consumption and create conditions for businesses to overcome difficulties.
The 2% VAT reduction policy continues for groups of goods and services currently subject to a tax rate of 10% (remaining at 8%), which has been applied from the beginning of 2022 to the first 6 months of 2025, according to the National Assembly's resolution. Tax reduction is not applied to 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).
According to delegate Tran Khanh Thu (National Assembly Delegation of Thai Binh province), the economic situation is facing many difficulties and challenges. The domestic economy is affected by fluctuations in the world economy and the fact that traditional rules in global trade have changed. This affects the ability to ensure export targets, so the proposal to reduce VAT is considered one of the fiscal policies that takes effect immediately to stimulate increased consumption. Continuing to issue this policy is to promote growth, with an important goal being domestic. VAT affects all organizations, individuals, enterprises, both production, circulation and consumption activities, both input and output of economic activities, reducing VAT has an immediate impact on the whole society, stimulating production and business activities, contributing to promoting the country's growth target.
According to the Ministry of Finance, this VAT reduction will reduce state budget revenue by about VND12 trillion. Of which, in the last 6 months of 2025, it will reduce over VND39.5 trillion that has been balanced in the revenue estimate and in 2026, it will reduce an additional VND82 trillion.
People and businesses expect
In recent years, the 2% VAT reduction policy has contributed to stimulating consumer spending. Not only consumers and businesses benefit, but manufacturing enterprises have also benefited from this policy as they have been supported with cash flow to restore production and business. The business community is still looking forward to continuing to benefit from this policy in the future.
According to Mr. Nguyen Van Huynh, Director of Tam Long Hung Phat Company Limited (in Bien Hoa city), a unit specializing in providing machinery and industrial products for manufacturing enterprises, machinery and components are already expensive. In difficult economic times, partners reduce consumption demand, making business difficult. When a part of VAT is reduced, it will help reduce product prices, stimulate demand for purchases, while suppliers will save more costs, thereby providing better customer care.
Similarly, Vice President of Dong Nai Young Entrepreneurs Association Nguyen Duy Khuong said that the majority of enterprises in the province are small and medium-sized. The VAT reduction policy, if extended until the end of 2026, is very positive. Once the policy is issued, small and medium-sized enterprises will have a basis to build their production and business plans better, gradually overcoming difficulties.
For the people, Ms. Tran Thi Luong (living in Trang Dai ward, Bien Hoa city) shared that she often buys dairy products and ingredients to make yogurt for her family and friends, so she has to spend quite a bit of money. If each time she goes to the store or supermarket, she can reduce the cost of spending, it will help her save some money.
Like Ms. Luong, many people said they hope the tax reduction policy will be extended and if it can be reduced further, it will be even better, because in reality, consumption is sluggish and difficult.
Van Gia
Source: https://baodongnai.com.vn/kinh-te/202505/doanh-nghiep-mong-cho-tiep-tucgiam-thue-vat-96c3c0a/
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