VAT reduction policy extended by late June, 2024
VGP - The 2 percent value-added tax cut shall be extended until June 30, 2024, according to a resolution approved by the National Assembly on November 29.
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The VAT reduction policy is applied to almost all groups of products and services, except for telecommunications, information technology, financial activities, banking, securities, insurance, real estate transactions, metal production and production of prefabricated metal products, coal mining, refined petroleum, production of chemicals and chemical products, along with goods and services subject to special consumption tax.
Earlier, the National Assembly passed a resolution to agree with the government’s proposal to reduce VAT by 2 percent from July 1, 2023 to December 31, 2023.
The Ministry of Finance estimated that the State budget revenue will be reduced by approximately VND25 trillion in the first six months of 2024.
The Government says the VAT reduction is needed to spur the national economy which has been impacted by the prolonged COVID-19 pandemic, along with the profound impact of climate change and natural disasters./.
