The resolution aims to stimulate consumption in line with the current economic context, thus supporting citizens and businesses; boosting production, trade, tourism, and domestic consumption, thereby contributing to the State budget and the national economy, towards implementing the five-year socio-economic development plan in 2021–2025, annual development goals, and the economic restructuring plan in 2021 – 2025; and creating momentum for economic growth in the next five years.
A 2-percentage-point reduction in the value-added tax (VAT) for goods and services will lead to a decrease in state revenue by approximately 121.74 trillion VND (over 4.69 billion USD) over the proposed period. This includes an estimated 39.54 trillion VND in the second half of 2025 and 82.2 trillion VND in 2026.
Legislators on May 24 listened to a proposal and a verification report on the further application of the 2% reduction in the value added tax (VAT) under a resolution dated January 11, 2022, as part of the ongoing fifth session of the 15th National Assembly.
