Gov’t extends VAT cut till June 30, 2025
VGP - The value-added tax (VAT) shall be reduced to 8 percent from 10 percent in the first six months of 2025, according to Decree No. 180/2024/ND-CP issued recently by the Government.
The new tax policy shall be applied to groups of goods and services currently subject to a tax rate of 10 percent, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
- Goods and services subject to special consumption tax.
- Information technology according to the law on information technology.
As the policy is applied in the first half of 2025, it would result in a budget deficit of around VND26.1 trillion (over US$1.02 billion), the Government estimated.
The 2 percent reduction in VAT has been introduced since 2022 to aid economic growth following the COVID-19 pandemic./.
