The Vietnamese National Assembly approves the extension of the VAT rate reduction measure

(VOVWORLD) – On the morning of the 13th, at the 34th meeting of the National Assembly Standing Committee in Hanoi, discussions were held on the government’s proposal to reduce the current 10% value-added tax (VAT) on certain goods and services by 2%, lowering it to 8%.

The government had requested in a submission to the 7th session of the 15th National Assembly that the ongoing VAT reduction measure be extended until the end of 2024.

Many deputies highly appreciated the government’s request and the preliminary review by the Finance and Budget Committee, noting that the economy is still in recovery and faces many challenges. Continuing VAT exemptions and reductions is seen as a way to boost consumer spending and sustain the momentum of economic recovery.

At the meeting, National Assembly Chairman Vuong Dinh Hue noted that relevant agencies basically agreed with the government’s proposal and instructed the government and the Finance and Budget Committee to finalize details for the adoption of the resolution at the 7th National Assembly session. The aim is to stimulate consumption demand, revitalize the production and business sectors, and restore the momentum of economic growth.