Gasoline and oil get 2% VAT reduction until the end of 2026

Gasoline, coal, information technology services... will have their value added tax (VAT) reduced by 2% until the end of next year, according to the National Assembly Resolution passed on the morning of June 17.

Accordingly, the VAT rate is reduced to 8%, applied to groups of goods and services currently subject to a tax rate of 10%, such as gasoline, information technology services, chemical products - prefabricated metals, coke, coal (imported, wholesale in the commercial business stage).

National Assembly deputies vote to pass a Resolution on reducing value added tax.

VAT reduction does not apply to some groups of goods and services such as 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 the plan submitted by the Government , the expected reduction in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about VND 122,000 billion. In case of implementing tax reduction according to the plan to reduce all items subject to the VAT rate of 10%, the expected reduction in budget revenue is equivalent to VND 167,000 billion.

In response to concerns that continued tax reductions will affect spending tasks, the Minister of Finance affirmed that VAT reductions will reduce budget revenue but also stimulate production and promote business activities. This tax reduction will contribute to creating additional revenue for the State budget (including the possibility of increasing revenue from other taxes thanks to the spillover effect of the VAT reduction policy).

In order to compensate for the revenue shortfall due to policy implementation, the Government will focus on directing the State budget collection, strengthening management, reforming administrative procedures, promoting digital transformation in tax management, especially in key areas and areas, land revenue, real estate transfer, e-commerce activities, and business activities on digital platforms.

The Minister of Finance also emphasized that the Government will direct the management of budget expenditures closely, increase savings in expenditures; proactively use reserves and other legal resources to spend on prevention and control of natural disasters, epidemics and urgent tasks arising, ensuring budget balance at all levels. The Government sets a target of striving for a State budget revenue in 2025 that is about 10% higher than the estimated implementation in 2024.

According to VnExpress

Source: https://baobacgiang.vn/xang-dau-duoc-giam-2-thue-vat-den-het-nam-2026-postid420201.bbg