Vietnam parliament approves extension of VAT cut until end-2026
Vietnam's National Assembly, the country's lawmaking body, on Tuesday passed a resolution to extend a cut in the value-added tax (VAT) rate until the end of next year, state media reported.
Laborers work at Hung Viet garment export factory in Hung Yen Province, northern Vietnam, December 30, 2020. Photo: Reuters
Vietnam cut its VAT rate to 8 percent from 10 percent in early 2022 to support the economy after the COVID-19 pandemic, and has since extended it a number of times.
The lowered rate applies to most goods and services, with exceptions for telecommunication, financial, insurance, real estate and stock trading services and metal products, Vietnam News Agency reported.
The tax cut will cost VND121.74 trillion ($4.7 billion) in foregone revenue from July to the end of next year, the report cited a Finance Ministry report as saying.
U.S. President Donald Trump said earlier this year that value-added taxes in other countries carried a lot of blame for America's trade deficit.
($1 = VND26,060)
Reuters
Link nội dung: https://news.tuoitre.vn/vietnam-parliament-approves-extension-of-vat-cut-until-end-2026-103250617152841851.htm