Business

Government proposes National Assembly consider 2% reduction in VAT in coming agenda

The Government has proposed the National Assembly (NA) to consider a 2% reduction in the value-added tax (VAT) on goods and services subject to a 10% VAT during its coming meeting stated to start on May 22.
Government proposes National Assembly consider 2% reduction in VAT in coming agenda ảnh 1Illustrative photo. (Photo: Internet)

Hanoi (VNA) – The Government has proposed the National Assembly (NA) to consider a 2% reduction in the value-added tax (VAT)on goods and services subject to a 10% VAT during its coming meeting stated tostart on May 22.

The Ministry of Finance and Ministry of Justice wereasked to complete the proposed draft resolution.

Last month, the Government agreed with theMinistry of Finance’s proposal on a plan to reduce taxes, fees, and charges for2023, which suggested the reduction.

In its proposal submitted to the PM onApril 14, the ministry suggested a VAT reduction from 10% to 8% for several goods andservices, along with a 20% cut in the percentage of goods for VAT calculationfor business establishments (including business households and individuals)when issuing invoices for all goods and services subject to the VAT.

The ministrysuggested that the policy, which is expected to boost the economy, should beapplied until December 31.

According tothe Ministry of Finance, if VAT is reduced by 2% for all goods and serviceswithin six months, the total tax reduction will be about 35 trillion VND (1.5billion USD) in support of people and businesses to overcome difficult times./.

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