On November 27, the Ministry of Justice held a meeting to review the proposal to draft a National Assembly Resolution on VAT reduction. Deputy Minister of Justice Nguyen Thanh Tinh chaired the meeting.
Speaking at the meeting, a representative of the Ministry of Finance said that in the 2022 - 2024 period, the National Assembly has resolved to reduce the VAT rate by 2% for groups of goods and services currently applying a VAT rate of 10% (to 8%), except for some groups of goods and services such as: telecommunications, information technology, financial activities, banking, etc.
In general, through the reduction of VAT for businesses engaged in the production and trading of goods and services, the selling price of goods and services to consumers also decreases.
Thereby promoting business production and consumption of people, contributing to creating more jobs for workers and achieving the goal set when building the VAT reduction policy, which is to stimulate consumption and promote production and business development.
However, in the coming time, our country will still face many difficulties and challenges in stabilizing the macro economy; production and business activities will still face difficulties; production costs will remain high; domestic purchasing power will show signs of slowing down...
Therefore, it is necessary to develop a Resolution of the National Assembly on VAT reduction to stimulate consumption, in line with the current economic context, promote production and business activities to recover and develop soon to contribute back to the state budget as well as the economy, implement the 5-year Socio-Economic Development Plan 2021 - 2025, the Annual Socio-Economic Development Plan, and the Economic Restructuring Plan for the period 2021 - 2025.
According to the draft, this Resolution adjusts the group of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, production of chemicals and chemical products, goods and services subject to special consumption tax in the first 6 months of 2025.
The VAT reduction plan in the draft Resolution remains the same as the content stipulated in Resolution No. 43/2022/QH15, Resolution No. 101/2023/QH15, Resolution No. 110/2023/QH15 and Resolution No. 142/2024/QH15.
At the meeting, members of the Appraisal Council agreed with the proposal to reduce VAT rates of the Ministry of Finance.
In addition, some Council members also expressed concerns about how to classify which goods and services are reduced from 10% to 8%; which goods and services are not reduced; the progress of submitting the draft Resolution...
Concluding the meeting, Deputy Minister of Justice Nguyen Thanh Tinh acknowledged the opinions of the members of the Appraisal Council; at the same time, agreed on the need to continue reducing VAT on a number of goods and services to suit the current economic context.
In addition, the Deputy Minister of Justice requested the drafting agency to closely follow the process of building the Resolution according to the Law on Promulgation of Legal Documents; ensuring the requirements of General Secretary To Lam on building and perfecting institutions, both strict and scientific, and meeting practical needs.
