The Vietnamese Government has proposed reducing the VAT rate from 10% to 8% on certain goods and services until December 31, 2026, excluding sectors like telecommunications, finance, real estate, mining (except coal), and items subject to special consumption tax (except gasoline). The proposal includes adding gasoline, washing machines, and microwave ovens to the VAT cut list, recognizing gasoline’s crucial economic role despite its special tax status. Finance Minister Nguyễn Văn Thắng highlighted that this reduction aims to stabilize the macroeconomy, encourage business growth, and create jobs, despite an estimated revenue loss of over US$4.69 billion through 2026. The policy is expected to lower consumer prices, boost consumption, and enhance business competitiveness. National Assembly deputies broadly support the plan but urge clear implementation measures, fair application, and a thorough fiscal impact assessment to balance economic growth with budget safety. Some also recommend expanding VAT cuts to more goods for fairness and simplicity. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News