NA Standing Committee agrees to reduce VAT by 2 percent

NA Standing Committee agrees to reduce VAT by 2 percent

The National Assembly Standing Committee discussed the draft Resolution on value added tax (VAT) reduction during its session on Thursday morning (13.06.2024).

Members of the NA Standing Committee basically agreed with the Government’s proposal to extend the reduction of the VAT rate by two per cent for goods and services through the last six months of this year. The VAT rate, normally 10 per cent, was reduced to 8 per cent last year through June 30.

They said that the VAT reduction of two per cent was appropriate for the current economic context.

NA Deputy Chairwoman Nguyễn Thị Thanh emphasized that the economy is in the recovery process and still faces many difficulties, so the VAT reduction would motivate consumers to spend, creating space for production and business rehabilitation. It would also create a driving force for enterprises to invest in production and development, thereby contributing to the State budget as well as the economy.

According to the NA’s resolution, the Government should urgently complete the draft resolution to send to the NA and verification agencies.

The Committee of Finance and Budget will officially check, clearly state its views and submit to the NA at an appropriate time arranged by the NA Office.