The budget is expected to reduce revenue by VND26.1 trillion due to a 2% reduction in VAT in the first half of 2025.

ANTD.VN - The Ministry of Finance has just announced to collect opinions on the draft Decree of the Government regulating the reduction of value added tax (VAT) according to the Resolution of the National Assembly.

Accordingly, the draft Decree stipulates continued reduction of VAT rates for a number of groups of goods and services currently applying a 10% VAT rate, applicable in the first 6 months of 2025.

The groups of goods and services with reduced tax are kept the same as current regulations.

The 2% VAT reduction policy is expected to continue for the first 6 months of 2024.

Specifically, the groups of goods and services currently subject to a tax rate of 10% (remaining at 8%), except for the following groups of goods and services: telecommunications, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products;

Goods and services subject to special consumption tax; Information technology according to the law on information technology.

The draft stipulates that VAT reduction for each type of goods and services mentioned above is applied at the stages of import, production, processing, and commercial business.

For coal products that are mined and sold (including coal mined and then screened and classified according to a closed process before being sold), VAT is subject to reduction. Coal products listed in Appendix I issued with this Decree, at stages other than mining and selling, are not subject to VAT reduction.

Corporations and economic groups that implement a closed process to sell coal are also subject to VAT reduction for coal products sold.

Regarding tax reduction, for business establishments calculating VAT according to the deduction method, a VAT rate of 8% is applied to goods and services eligible for tax reduction.

For business establishments (including business households and individual businesses) calculating VAT using the percentage method on revenue, the percentage rate for calculating VAT is reduced by 20% when issuing invoices for goods and services with reduced tax.

According to the Ministry of Finance, in 2024, the 2% VAT reduction in the first 10 months of the year supported businesses and people with about 40.8 trillion VND, and is estimated to support about 49 trillion VND for the whole year.

The report of the Government and the Ministry of Planning and Investment shows that the economic and social situation has many positive points, with each quarter being higher than the previous quarter, and the first 9 months achieving many important results, higher than the same period in most areas.

GDP growth in the first 9 months reached 6.82%; estimated for the whole year at 6.8 - 7%, higher than the target assigned by the National Assembly (6 - 6.5%), belonging to the group of countries with high growth rates in the region and the world, highly appreciated by many large and prestigious international organizations.

In the first 6 months of 2025, if tax reduction continues, the expected reduction in state budget revenue in 6 months is about 26.1 trillion VND, equivalent to about 4.35 trillion VND/month. Of which, the domestic revenue will decrease by about 2.85 trillion VND/month and the import revenue will decrease by about 1.5 trillion VND/month.

"Reducing VAT has the effect of reducing state budget revenue but also has the effect of stimulating production, promoting production and business activities, thereby contributing to creating more revenue for the state budget" - said the Ministry of Finance.

Source: https://www.anninhthudo.vn/ngan-sach-du-kien-giam-thu-261-nghin-ty-dong-do-giam-2-thue-vat-nua-dau-nam-2025-post597392.antd