- National Assembly Standing Committee fixed a 5% VAT rate on draft amendments to existing VAT law
- Draft amendments include applying 5% VAT rate to fertiliser and iron used for fertiliser production
- Fertiliser producers currently face difficulties due to not being able to deduct VAT for input goods and services
- Lawmakers are concerned about negative impacts on farmers and agricultural production if 5% VAT rate is applied to fertilisers
- Suggestions made to consider moving fertilisers to non-VAT category to avoid burdening consumers, especially farmers
- Applying 5% VAT rate on fertilisers could increase budget by $175 million a year, but concerns remain about impact on farmers and agricultural competitiveness
Source: vir.com.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
