- Vietnam is considering extending VAT reductions through late 2025 and 2026.
- Prime Minister Pham Minh Chinh has directed the Ministry of Finance to study and propose an expansion of VAT reductions.
- The Ministry of Finance must submit a report to the government by March 15, 2025.
- The Ministry of Finance is also tasked with drafting a decree to extend tax payment deadlines for various tax obligations in 2025.
- Vietnam implemented two rounds of VAT reductions in 2024.
- A 2% VAT reduction has been in effect from January 1 to June 30, 2025.
- The VAT reduction policy has been credited with lowering production costs, reducing consumer prices, and supporting businesses and consumers.
- Experts argue that the VAT reduction policy should be expanded to cover a wider range of industries and extended for a longer duration.
- Policymakers and business leaders believe that longer tax reductions could better support economic recovery.
- The upcoming March 15 report from the Ministry of Finance will determine whether Vietnam will extend its VAT relief measures into 2026 and possibly broaden its scope to include more industries.
Source: vietnamnet.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.
