The Government proposed a two-percentage-point reduction in VAT - from 10% to 8% - on goods and services currently subject to the 10% rate. This excludes certain sectors such as telecommunications, finance, banking, securities, insurance, real estate, metals, mineral products (excluding coal), and goods and services subject to special consumption tax (excluding petrol). The proposed timeframe for the reduction is from July 1, 2025 to December 31, 2026.
Although inflation has been controlled in accordance with the set target, state management agencies and enterprises have stayed vigilant and prepare price stabilisation measures in the remainders of the year.
The Government on June 30 issued a decree regulating a reduction in value-added tax (VAT) on goods and services from July 1 to December 31, in accordance with Resolution 142/2024/QH15 adopted by the National Assembly on June 29.
