Govt proposes cutting VAT from 10% to 8%

This is part of the content in the Resolution on fiscal and monetary policies to support the Socio-economic Recovery and Development Program recently approved by the National Assembly.

According to sources from Investors, on the afternoon of January 11, the National Assembly agreed to reduce the value-added tax rate (VAT) by 2% in 2022, applicable to groups of goods and services currently subject to VAT of 10%.

This reduction will not apply to groups of goods and services including: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, and commodity products. and services subject to excise tax…

This is part of the Resolution on fiscal and monetary policies to support the Socio-economic Development and Recovery Program. The Resolution takes effect from today until the end of December 31, 2023.

Previously, according to Tuoi Tre, the Government proposed to reduce VAT from 10% to 8%. The Government assesses that economic growth in both years 2020-2021 is very low in recent years, production and business activities face many difficulties, especially in 2021 when many fields are severely affected. masonry.

“The epidemic not only affects in the short term, but also in the medium and long term, the 5-year and 10-year growth targets. If there are no solutions to support the economy, the average growth rate forecast for the period 2021 – 2025 will only reach 5.4%/year, lower than the set target.

It is known that in addition to reducing VAT by 2%, the National Assembly also agreed to increase development investment spending from the state budget to a maximum of 176,000 billion VND, concentrated in the two years 2022 and 2023. Accordingly, interest rate support. for enterprises, cooperatives, business households (2%/year) up to 40,000 billion VND through the system of commercial banks for a number of important industries and fields, enterprises, cooperatives, households business that has the ability to repay debts and recover; loans to renovate old apartment buildings, build social housing, houses for workers to rent and rent to buy.