Gov’t proposes VAT cut in May

The Government is set to submit a proposal on value-added tax (VAT) reduction to the National Assembly for consideration and approval in May

Under the proposal, the Government proposes 2 percent reduction of VAT from the current 10 percent to support businesses and people.

According the Ministry of Finance, the State budget revenue will be reduced by VND35,000 billion in the second half of this year if the new VAT policy is approved.

Last year, a similar policy was also applied by the Government to help businesses recover from the COVID-19 pandemic.

Earlier, the Government, for the fifth time, decided to extend the payment deadline for enterprises to pay value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent amounting to over VND112 trillion.

The Government, for the fifth time, has decided to extend the payment deadline for enterprises to pay value-added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent amounting to over VND112 trillion./.

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