Gov’t agrees with proposal on 2% VAT reduction for 2023

The ministry was asked to work with other relevant ministries and agencies on the draft resolution and report it to the Government before April 25 for submission to the National Assembly.

The Ministry of Finance opts for the option of reducing VAT from 10 per cent to 8 per cent for all goods and services which were currently subject to a VAT rate of 10 per cent.

It was estimated that the VAT reduction would cause the State budget revenue to shrink by VNĐ35 trillion in the second half of this year, or on average VNĐ5.8 trillion per month.

The VAT reduction aimed to stimulate consumption demand in line with the current economic context, thereby, promoting production and business to recover and contribute to the State budget and the economy.