Minister of Finance Ho Duc Phoc (Photo: VNA) Hanoi (VNA) – Lawmakers discussed the reduction ofvalue-added tax (VAT) during the 15th National Assembly (NA)’s ongoingsixth session in Hanoi on November 20.
Before the discussion, the NA listened to Minister of Finance HoDuc Phoc’s presentation of a summary report on the NA’s draft resolution on VATreduction. Chairman of the NA's Finance and Budget Committee Le Quang Manhdelivered a report examining VAT reduction.
The reports said last year, the legislature issued a resolution onfiscal and monetary policies to support the socio-economic recovery anddevelopment programme, including a 2% reduction in the VAT for certain goodsand services subject to a 10% , effective from February 1, 2022 to December31, 2022.
Amid economic challenges, the NA decided to continue with VATreduction from July 1-December 31, 2023.
Phoc said from July-October, the policy provided support totalingaround 15.6 trillion VND (650 million USD) for businesses and citizens, contributingto reducing the prices of goods and services, stimulating production and trade, generatingmore jobs to workers and boosting consumption demand.
The Government suggested that drastic and effective supportmeasures related to taxes, fees, charges, and land rents that have been issuedin 2023 should continue while similar support for 2024 should be considered andproposed, he said.
Specifically, a 2% VAT reduction was proposed for goodsand services currently subject to a 10% rate, excluding certain categories suchas telecommunications, information technology, financial activities, banking,securities, insurance, real estate business, metals, finished metal products,mining products, coke, refined petroleum, chemical products, and goods andservices subject to special consumption tax, applicable from January 1-June 30,2024.
Concluding the discussion, Phoc provided explanations about some issues raisedby deputies. He said reducing the VAT is one of many measures to stimulate theeconomy and effective only in the short term. Therefore, it is still necessaryto adopt long-term solutions to boost GDP growth./.
