VAT reduction is to be extended to year's end

The 15^th National Assembly (NA) Standing Committee on June 13 agreed to continue with the 2% value-added tax (VAT) cut for certain goods and services from July 1 to the end of the year to back the country’s socio-economic recovery and development, according to a report from the Vietnam News Agency.

Speaking at the Committee’s ongoing 34th session, NA Vice Chairwoman Nguyen Thi Thanh stressed that the continuation of the tax incentive from 10% to 8% will boost domestic consumption while motivating enterprises to maintain and develop their production and business.

Meanwhile, NA Vice Chairman Tran Duc Hai requested the Government to collect opinions from the committee and inspection agencies to complete the draft resolution on the tax reduction before submitting it to the legislature for consideration.

The Government should work to ensure that the tax cut will not affect the state budget revenue and overspending estimates this year, he said.