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chowheatmegaways|Vietnam's 2-percent VAT reduction continues until year-end

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HANOIchowheatmegaways, June 13 (Xinhua) -- The Vietnamese National Assembly's Standing Committee on Thursday gave the green light to extending a 2-percent value-added tax (VAT) reduction from 10 percent to 8 percent for certain goods and services until the end of this year following the government's proposal, local media reportedchowheatmegaways.

According to the government, the reduction which was proposed to continue from July 1, 2024 to the end of the year, will reduce state budget collection in the second half by about 24 trillion Vietnamese dong (943.3 million U.S. dollars). The overall state budget is estimated to decline by nearly 47.5 trillion dong (1.87 billion dollars) for the whole year.

The government said although the tax reduction would reduce budget revenue, it would help lower production costs and selling prices, then stimulate business and create sources for state budget collection.

Nguyen Thi Thanh, National Assembly vice chairwoman, was quoted by Vietnam News Agency as saying that the continuation would create rooms for production and business recovery. It will also motivate enterprises to maintain their operations and help the state budget and the economy.

chowheatmegaways|Vietnam's 2-percent VAT reduction continues until year-end

The reduction is applicable for sectors including aviation, transport, tourism, accommodation, catering services, education and training, agriculture, processing and manufacturing, and social housing. Certain supplies excluded are IT, production and mining, real estate, chemicals and financial services.