Business

Government proposes extending VAT cut until year end

The Government has proposed extending the cut in value-added tax (VAT) from 10% to 8% on specific groups of goods and services from July 1 until the end of the year to support business and production activities.
Government proposes extending VAT cut until year end ảnh 1The Government has proposed extending the cut in value-added tax (VAT) from 10% to 8% on specific groups of goods and services. (Photo: baodautu.vn)
Hanoi (VNA) – The Government has proposed extending the cut invalue-added tax (VAT) from 10% to 8% on specific groups of goods and services fromJuly 1 until the end of the year to support business and production activities.

In its proposal sent to the National Assembly, the Ministry of Finance heldthat it is necessary to study and propose relevant measures for 2024, including extending the 2% reduction in VAT, the payment deadline for corporate income tax,special consumption tax and personal income tax, and reduction of several fees andland rental, which were applied in 2023.

With the 2% tax cut in the second half of the year, the State budget will be slashed by some 24 trillionVND (nearly 994.7 million USD), or around 4 trillion VND per month.

The tax incentive reduced the government revenues by more than 23.48 trillionVND in H1.

Highlighting the formidable challenges to the economy brought by the COVID-19pandemic, climate change and natural disasters, the Government said that a widerange of financial measures were implemented during 2020-2023, worth some 700trillion VND, to prop up the economy./.
VNA
#Government #Ministry of Finance #tax cut #feess #land rental #tax incentive #COVID-19 pandemic #climate change #economy #Vietnam News Agency #Vietnamplus
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