Half cut of VAT for 19 commodities

The plan is a move to realize the Government’s policies to stimulate investment and consumption, curb economic downturn, and assist enterprises.

Accordingly, 19 kinds of commodities will enjoy a 50% reduction of VAT.

Some typical goods in the list include automobiles and spare parts, coal, basic chemicals, mechanical products as production materials, ships, and explosive materials.     

The same tax incentive will be also granted to such services as transportation (excluding international one), hotels, traveling, and printing.

The regulations on tax cut will come into effect on February 1 until December 31, 2009.

By Kim Loan