Deputy Prime Minister: Spending on officials who quit their jobs or retire early due to streamlining the apparatus is about 170,000 billion

Deputy Prime Minister Ho Duc Phoc - Photo: GIA HAN

On the morning of April 23, the National Assembly Standing Committee gave opinions on the National Assembly's draft resolution on reducing value-added tax for the last 6 months of 2025 and the whole year of 2026.

Proposal to reduce VAT until the end of 2026

Presenting the Government's proposal, Deputy Minister of Finance Cao Anh Tuan stated that the Government proposed to reduce the value added tax (VAT) rate by 2% for groups of goods and services currently subject to a tax rate of 10% (to 8%).

Except for some groups of goods and services including 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).

Applicable period from July 1, 2025 to December 31, 2026.

Regarding the impact of tax reduction, according to the report, the expected reduction in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about 121,740 billion VND (of which, the last 6 months of 2025 will decrease by about 39,540 billion VND, in 2026 it will decrease by about 82,200 billion VND).

However, according to the Government, 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.

For people and businesses, a 2% reduction in VAT will directly reduce people's costs in consuming goods and services.

At the same time, it helps businesses reduce production costs, lower product prices, and increase the competitiveness of their products.

Examining this content, Chairman of the Economic and Financial Committee Phan Van Mai stated that the majority of opinions in the Standing Committee of the Committee basically agreed with the proposal to continue allowing the application of the policy of reducing VAT rate by 2% as recommended by the Government.

Propose that the Government study and accept the review comments to complete the draft resolution.

Tax reduction to facilitate business development and competition

Reporting further on the proposal to issue a resolution at this time, Deputy Prime Minister Ho Duc Phoc said that VAT has been reduced for the first 6 months of the year, but the impact of the US tax policy on the world, including Vietnam, will be felt in the last 6 months of the year.

Therefore, it is necessary to continue reducing taxes for businesses to create stable, developing and competitive production and business conditions.

Regarding concerns about a reduction in revenue of tens of thousands of billions of dong that has not been included in the budget estimate as stated by the auditing agency, Mr. Phoc said that there will be a collection method to still complete this year's budget revenue target.

Chairman Phan Van Mai commented that at the previous meeting of the National Assembly Standing Committee, the National Assembly Chairman requested the Economic and Financial Committee to coordinate with Government agencies to grasp the savings from the organization's streamlining.

The second is the number of tasks performed for investment and implementation of policies to reorganize the apparatus.

Mr. Mai asked Deputy Prime Minister Ho Duc Phoc to direct agencies to coordinate in assessing revenue and expenditure to balance the budget.

"If we add up the hundreds of thousands of billions of dong in revenue reductions and the hundreds of thousands of billions of dong in expenses, the number is very large. Meanwhile, the national budget revenue is about 2 million billion dong. This ratio is quite large compared to the total revenue, so we need this number soon," Mr. Mai suggested.

In response to this content, Deputy Prime Minister Ho Duc Phoc said he would assign the Ministry of Finance to synthesize and report to the National Assembly Standing Committee and the National Assembly Chairman.

According to the Deputy Prime Minister, budget expenditures will increase this year. When streamlining the apparatus, just paying officials who quit their jobs or retire early will cost about 170,000 billion VND, according to incomplete statistics.

In addition, tuition fees are exempted for about 30,000 billion VND. In the near future, some policies on health insurance and other policies will be implemented, so the amount of expenditure may increase...

Regarding VAT, he said that in the past 4 years, it has been reduced by 2%, from 10% to 8%. This is a priority for businesses, ensuring that businesses can recover after the pandemic.

"This July, the guidance for making the 2026 budget and the financial and public debt plan for the next term will fully report the forecast of spending capacity. This year is still bearable," said Mr. Phuc.

He added that this year, the salary payment for severance pay and the streamlining of the apparatus have been used in the long-accumulated salary fund, and also from the budget. But next year, the Government will report to balance the collection policy, taxes, and balance in the next 5 years and 2026.

Vice Chairman of the National Assembly Nguyen Duc Hai stated that the National Assembly Standing Committee agreed with the Government's proposal to promote production and business, and requested the Government to complete the dossier to increase persuasiveness and submit it to the National Assembly for decision at the upcoming 9th session.

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Source: https://tuoitre.vn/pho-thu-tuong-chi-cho-can-bo-thoi-viec-nghi-huu-truoc-tuoi-do-tinh-gon-bo-may-khoang-170-000-ti-20250423105741929.htm