According to the proposal of the Ministry of Finance to the Prime Minister, the VAT reduction will continue to be implemented from January 1, 2024 to June 30, 2024. The 2% reduction in VAT tax rate will continue to be applied to groups of goods and services currently applying the 10% tax rate (reduced to 8%). The tax reduction will exclude the following groups of goods and services: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and manufacturing fabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, chemical product manufacturing, goods and services subject to excise tax special receptor.

The Ministry of Finance estimates that implementing the 2% VAT reduction policy in the first 6 months of 2024 is expected to reduce State Budget revenue by about VND 25,000 billion.

The solution to reduce VAT along with other tax, fee and charge solutions are creating great conditions to help businesses reduce production costs, increase profits, and increase the ability to stimulate demand./.