The Govenrment expects the National Assembly will continue to approve the Government's proposal to cut VAT by 2% to 8% this year to support businesses and people.
In a resolution released on May 2, the Government asked the Ministry of Finance to garner Government members’ opinions and complete the resolution.
The Government authorized the Minister of Justice, on behalf of the Prime Minister, to report to the National Assembly Standing Committee to add the VAT resolution to the 2023 lawmaking programme.
The Government also asked the National Assembly Standing Committee for permission to submit the resolution to the National Assembly at its May session for approval.
In mid-April, the Ministry of Finance proposed reducing VAT by 2% from the current rate of 10% for goods and services. Economic establishments, when issuing an invoice, will be entitled to a 20% reduction of the percentage for tax calculation. This policy is expected to take effect until the end of 2023.
According the Ministry of Finance, the State budget revenue will be reduced by VND35,000 billion in the second half of this year if the new VAT policy is approved.
Last year, a similar policy was also applied by the Government to help businesses recover from the COVID-19 pandemic.