On the afternoon of November 30, the Secretary General of the National Assembly held a press conference to announce the results of the 8th session of the 15th National Assembly.
Responding to a reporter's question about why the value-added tax (VAT) was not reduced by 2% for the entire year of 2025, Mr. Vu Tuan Anh - Standing Member of the Finance and Budget Committee - said that in order to continue supporting production and business, stimulating demand and developing the economy, the Government has submitted to the National Assembly to continue implementing the policy of reducing VAT by 2%.
"The implementation of the 2% VAT reduction has just been approved by the National Assembly according to the Government's proposal," said Mr. Vu Tuan Anh, adding that the implementation of the 2% VAT reduction policy has had a certain impact in the recent past, contributing to removing difficulties and promoting production and economic development.
This person added that recently the Government has proposed many times to reduce VAT by 2%; this time it will not be implemented for the whole year because it is related to balancing local budgets.
"Currently, the budget estimate has been approved by the National Assembly, so a large tax reduction will affect the balance of local budgets," said Mr. Vu Tuan Anh.
In addition, the Law on Value Added Tax (amended) has just been passed by the National Assembly, effective from July 1, 2025, so implementing a 2% reduction until June 30, 2025 is appropriate.
Regarding the family deduction in the Personal Income Tax Law, Mr. Vu Tuan Anh said that he has assigned the Government to submit to the National Assembly Standing Committee to adjust the family deduction when there is an adjustment to the CPI.
According to Mr. Vu Tuan Anh, the family deduction has changed a lot since the time of adjustment. Recently, there have been suggestions to study and amend, however, the Ministry of Finance focuses on areas with problems to immediately resolve them, promoting production and business.
Recently, in the amendment of the Law on Value Added Tax, the VAT tax threshold was adjusted from 100 million VND to 200 million VND; at the same time, it was amended to ensure the personal income tax threshold.
"Up to this point, the Government has not submitted the family deduction adjustment to the National Assembly Standing Committee for consideration according to the provisions of law," Mr. Vu Tuan Anh added.
