National Assembly discusses VAT reduction, proposes extending until end of 2026

On May 28, the National Assembly held a plenary session to discuss the draft Resolution of the National Assembly on reducing value-added tax. During this session, the Government proposed expanding the scope of application and extending this policy until December 31, 2026, to support economic development.

The Government proposes to expand the subjects eligible for the 2% VAT rate reduction policy. The application period is from July 1, 2025 to December 31, 2026. This policy applies to groups of goods and services currently subject to a 10% tax rate (remaining at 8%). The goal is to institutionalize the socio -economic development target of 8% or more in 2025. At the same time, it contributes to creating a solid foundation for achieving double-digit growth in the 2026-2030 period. The Government assesses that the VAT reduction helps businesses reduce costs, increase profits, and stimulate demand.

Minister of Finance Nguyen Van Thang spoke to explain and clarify a number of issues raised by National Assembly deputies. (Photo: VNA)

However, some groups of goods and services are not subject to tax reduction. Including: Telecommunications, financial activities, banking, securities, insurance, real estate business. Metal products, mining products (except coal). Goods and services subject to special consumption tax (except gasoline).

The Government calculated that the expected reduction in State budget revenue is nearly 122,000 billion VND. The Economic and Financial Committee basically supports the proposal. However, there are concerns that the continuous extension will create a bad precedent, causing policy instability. The Committee recommends that the Government have effective solutions, ensuring that the target is easy to achieve and convenient for taxpayers.

Also on May 28, the National Assembly discussed many other important issues. In the morning, the National Assembly discussed the draft Law amending and supplementing a number of articles of the Law on Planning. Next was the draft Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy. In the afternoon, the National Assembly discussed the draft Resolution of the National Assembly amending and supplementing a number of articles of the Rules of Procedure of the National Assembly Session.

Source: https://thoidai.com.vn/quoc-hoi-thao-luan-giam-thue-vat-de-xuat-keo-dai-den-het-nam-2026-213867.html