Government Proposes Extension of VAT Reduction Until End of 2024

Government Proposes Extension of VAT Reduction Until End of 2024

The Vietnamese Government has emphasized continued support for economic recovery by proposing to extend the current 8% value-added tax (VAT) rate on specific goods and services. This action aims to address ongoing economic challenges and promote stability.

The Government underscores the effectiveness of tax support measures implemented in 2023 and the importance of building upon those efforts. The proposed extension includes:

  • Maintaining the Reduced VAT: The 8% VAT would be maintained through the end of 2024, postponing the previously planned return to the 10% rate.
  • Estimated Revenue Impact: This decision is estimated to result in a VAT revenue reduction of VND47,488 billion for the entire year of 2024.

The Government’s actions prioritize macroeconomic stability and the facilitation of sustainable economic growth. These measures are part of a broader strategy addressing financial and policy considerations.

In its assessment, the Government recognizes the positive results from previous tax relief efforts. Maintaining the 8% VAT rate joins a coordinated, multifaceted response designed to support both businesses and citizens, contributing to overall economic recovery.

Note: The specific goods and services eligible for the continued 8% VAT rate will likely be clarified in subsequent government announcements or legislative actions.

Share this article: