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Extension of the 2% VAT cut: A new stimulus for businesses until the end of 2024
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The Government has decided to extend the reduction of the value-added tax (VAT) by 2% for certain groups of goods and services, lowering it from 10% to 8% until the end of 2024.
The Government will extend the 2 percent cut in value-added tax (VAT) until the end of 2024. Source: Government News
On the morning of June 13th, under the direction of Vice Chairman of the National Assembly Nguyen Duc Hai, the Standing Committee of the National Assembly agreed to propose to the National Assembly to continue reducing the VAT by 2% from now until the end of 2024 for certain groups of goods and services. This decision aims to support businesses and citizens amidst ongoing global economic fluctuations and challenges.
At the session, Vice Chairman of the National Assembly Nguyen Duc Hai requested the Government to heed feedback and complete the draft Resolution. The Government must ensure that the implementation of the policy remains seamless and does not adversely affect the budget for 2024, as well as adjust and supplement tax laws appropriately with the tax reform strategy and international norms.
According to the draft Resolution presented by the Government at the session, the policy of reducing the VAT rate by 2% applies to certain groups of goods and services currently taxed at 10% (reduced to 8%), with the exception of the following groups:
The preliminary examination report on the draft Resolution of the National Assembly regarding the reduction of value-added tax (VAT) shows that the majority of the Standing Committee of the Finance and Budget Committee agree with the proposal to continue the 2% VAT rate reduction as outlined in Resolution No. 110/2023/QH15 of the National Assembly.
This policy will be effective from July 1, 2024, to December 31, 2024.
Vice Chairman of the National Assembly Nguyen Duc Hai delivered the concluding remarks on the discussions of the Standing Committee of the National Assembly
The policy to continue reducing VAT until the end of 2024 is a strategic move by the Government to support businesses and citizens in overcoming difficulties while promoting sustainable economic development. This is a positive signal for businesses, helping to alleviate financial burdens, stimulate consumption, and create further momentum for economic growth.
→ For more details: Gov’t proposes extension of VAT cut until year end
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