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CA News 2024

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The Vietnamese ministry proposes to extend the 2% VAT reduction until the end of 2024

Vietnam’s Ministry of Finance, in a recent proposal to the National Assembly, stressed the need for appropriate policy measures this year, including extending the 2 percent reduction in value-added tax (VAT); a payment term for corporate tax, special consumption tax and personal income tax; and reduction of various fees and land rents enforced last year.

The 2 percent tax cut in the second half of this year is expected to reduce the government budget by about VND24 trillion ($994.7 million), or about VND4 trillion per month, a news agency reported.

Vietnam’s Ministry of Finance has proposed extending the 2 percent VAT reduction until the end of 2024; a payment term for corporate tax, special consumption tax and personal income tax; and a reduction in various fees and land rents to be implemented in 2023. The tax cut in the second half of 2024 will likely reduce the state budget by about $994.7 million.

Following the COVID-19 pandemic, climate change and natural disasters, a wide range of financial measures worth VND700 trillion were implemented between 2020 and 2023 to support the economy, the government said.

Fiber2Fashion News Desk (DS)