Legislators work on further application of 2% VAT reduction

Illustrative photo (Source: VNA)

Hanoi (VNA) – Legislators on May 24 listenedto a proposal and a verification report on the further application of the 2%reduction in the value added tax (VAT) under a resolution dated January 11,2022, as part of the ongoing fifth session of the 15th NationalAssembly.

Minister of Finance Ho Duc Phoc noted that theGovernment submitted Resolution 43/2022/QH15 on fiscal and monetary policies insupport of the socio-economic recovery and development programme for approval.

The resolution prescribes the VAT reduction for mostitems from 10% to 8%, he continued, noting that the document has helpedbusinesses and people with about 44.5 trillion VND (1.8 billion USD),contributing to spurring production and business, generating jobs forlabourers, stimulating consumption, and raising State budget collection.

Given the complexities in the domestic and global situationforecast for the time ahead, which would challenge the domestic economy andenterprises, the Government proposed the further application of the 2% VATreduction from July 1, 2023 to the end of this year, the minister said.

Minister of Finance Ho Duc Phoc (Photo: VNA)

According to Chairman of the NA’s Finance-BudgetCommittee Le Quang Manh, most of the members of the committee approved theGovernment’s proposal to further support people and businesses in recovery and development.

The committee, however, suggested the Government evaluatethe impact of the reduction more precisely to meet set targets, he said, adding thatsome proposed raising the rate to 4% from the present 2%.

Most of the lawmakers also agreed with the durationfrom July 1 to the end of this year, while some others held that it should beextended to ensure the stability and efficiency of the policy, Manh said./.

VNA