VAT reduction policy extended for another six months

The resolution received the support of all deputies attending the plenary session on June 29 which was also the last working day of the seventh session.

Under the existing policy, the 8% VAT applies to all lines of goods and services, except for telecommunications, information technology, finance-banking activities, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, as well as goods and services subject to special consumption tax.

The extension of the 2% tax reduction period will lead to a reduction of about VND24 trillion in budget revenue in the second half of this year, along with nearly VND23.5 trillion in the first half.

The Government that made the proposal believes that such a policy will contribute to reducing costs and selling prices of goods and services, thereby helping to promote production and business and maintain jobs for workers, as well as macroeconomic stability and economic recovery.