The National Assembly has officially passed a resolution to reduce the value-added tax (VAT) by 2% for goods and services subject to a 10% tax rate, maintaining the reduced rate of 8% until the end of June 2025. This policy aims to support businesses and citizens, stimulate production and consumption amidst ongoing economic challenges. However, certain sectors, such as real estate, securities, banking services, telecommunications, information technology, goods subject to special consumption taxes, coke, and chemicals, are excluded from this reduction.

It is estimated that this policy will reduce state budget revenues by approximately VND 26.1 trillion. To address this, the National Assembly has tasked the Government with ensuring a balanced budget for 2025.

VAT is an indirect tax borne by the final consumer. Unlike other taxes, the VAT burden is shared between businesses and consumers. Reducing VAT provides dual benefits: it helps citizens save on expenses and reduces costs for businesses, thus stimulating production and creating long-term revenue for the state budget.

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