Supporting economic recovery: Proposal to continue applying value-added tax reduction

Minister of Finance Nguyen Van Thang, authorized by the Prime Minister, presented the draft Resolution.

Necessary in the context of economic difficulties

The draft resolution of the National Assembly on value-added tax reduction presented by the Minister of Finance, authorized by the Prime Minister, said that the proposal to expand the subjects of application and extend the implementation period of the policy of reducing VAT rate by 2% aims to institutionalize the socio-economic development target in 2025 with a growth target of 8% or more, contributing to creating a solid foundation to achieve double-digit growth in the period of 2026 - 2030.

During the period from 2022 to the first 6 months of 2025, the National Assembly has resolved to reduce the VAT rate by 2% for groups of goods and services currently subject to a VAT rate of 10% (to 8%), excluding some groups of goods and services. The VAT reduction solution, along with other tax, fee and charge support solutions, is creating great conditions to help businesses reduce production costs, increase profits and increase the ability to stimulate demand.

In addition to the basic achievements, our country's economy still has limitations, shortcomings and continues to face many difficulties and challenges. Growth drivers have not had a clear breakthrough according to growth requirements such as production and business activities still facing difficulties, production costs are still high, domestic purchasing power has improved but slowly, especially the US announced to impose reciprocal tariffs on countries, including Vietnam. Domestic aggregate consumer demand is considered an important driving force to promote economic growth.

To contribute to creating momentum to promote and develop the economy, support people and businesses, promote production, business, tourism and domestic consumption in 2025 and 2026, it is necessary to continue implementing the VAT reduction policy.

The basic content of the draft Resolution is: Reduce 2% VAT rate for groups of goods and services currently subject to a tax rate of 10% (to 8%), 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). The application period is from July 1, 2025 to December 31, 2026.

The Resolution assigns the Government to guide the reduction of VAT rates and organize the implementation of this policy to ensure transparency and efficiency.

Chairman of the National Assembly's Economic Committee Phan Van Mai presented the inspection report.

Basically agreed to apply the policy of reducing 2% VAT rate

Examining the draft Resolution, the National Assembly's Economic and Financial Committee (KTTC) affirmed that the majority of opinions in the KTTC 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.

Based on the majority of opinions, the Economic and Financial Committee basically agrees with the proposal to continue allowing the application of the 2% VAT rate reduction policy as proposed by the Government and requests the Government to study and accept the appraisal opinions to complete the draft Resolution.

At the same time, it is recommended to implement the conclusions of the National Assembly Standing Committee in organizing the implementation of policies, ensuring the set goals, avoiding difficulties and obstacles; assessing and calculating the ability to balance the budget when implementing this Resolution at the same time as the budget impact of revenue reduction policies, other newly arising expenditure tasks from now until the end of the year to be reflected in the report on assessing the financial situation of the budget in 2025 and as a basis for building the budget estimate for 2026; being responsible for managing and implementing revenue tasks, ensuring the balance of the State budget in 2025 within the scope of the State budget deficit decided by the National Assembly.

Hai Lien

Source: https://baochinhphu.vn/ho-tro-phuc-hoi-kinh-te-de-xuat-tiep-tuc-ap-dung-giam-thue-gia-tri-gia-tang-102250513155830955.htm