Gov’t proposes 2% VAT cut in H1 2025
VGP - The National Assembly will consider the Government's proposal to cut value added tax (VAT) by 2 percent in the first half of 2025 in a bid to spur economic growth.
November 29, 2024 8:22 AM GMT+7
Customers buy goods at a supermarket in Ha Noi
The Government proposed that the new VAT policy should be applicable to all goods and services except for telecommunications, financial activities, banking, securities, insurance, real estate trading, metal products, mining products (excluding coal mining), refined petroleum, chemical products, goods and services subject to special consumption tax.
If 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./.
