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| The legislature adopts the resolution on VAT reduction with 452 deputies present voting in favor, accounting for 94.56 percent of the total.__Photo: VNA |
The 15th National Assembly (NA) voted to pass a resolution on value-added tax (VAT) reduction, and a law amending and supplementing a number of articles of the Law on Enterprises on June 17 morning, part of its ongoing 9th session.
The legislature adopted the resolution on VAT reduction with 452 deputies present voting in favor, accounting for 94.56 percent of the total.
According to the resolution, scheduled to be effective from July 1, 2025 to December 31, 2026, the VAT rate will be reduced to 8 percent from 10 percent for goods and services specified in Clause 3, Article 9 of the Law on VAT No. 48/2024/QH15, except for the following groups: telecommunications, finance, banking, securities, insurance, real estate, metal products, mineral products (except coal), and goods and services subject to the special consumption tax (except petrol).
Compared to the previous resolutions, the new one expands the coverage of the VAT cut to transportation, logistics, and IT products and services.
The Government reported that the VAT reduction may lead to decreases of some VND 39.54 trillion in state budget revenue during the second half of 2025, and about VND 82.2 trillion in 2026. However, the move is expected to boost production and business activities, thereby helping to drive revenue sources for the state budget.
Meanwhile, 455 lawmakers, or 95.19 percent of the deputies present at the plenum, voted in favor the law amending and supplementing a number of articles of the Law on Enterprises.
The amendment law, which consists of three articles, will come into effect from July 1, 2025.- (VNA/VLLF)
