The government instructed it at a meeting Thursday to submit the proposal by Saturday to extend the VAT cut for six more months from its original expiry date of December 31 this year.

It is meant to support businesses but also consumers.

People buy groceries at a supermarket in HCMC's Go Vap District, June 2023.

According to the government's assessment, the economy is stable and inflation is under control.

Growth in the first nine months was 4.24%, and 5.33% in the third quarter.

This places Vietnam among the fastest growing economies globally.

However, there are still challenges due to complex and unpredictable global developments.

The government identifies investment, exports and consumption as the three drivers of the economy.

The National Assembly had approved in June a 2 percentage point cut in VAT during the second half of 2023 except for some sectors like real estate and banking.

Other sectors not covered by the reduced tax, which took effect on July 1, include telecommunications, information technology, finance, securities, insurance, metal products, mining products, refined petroleum, chemical products and items subject to special consumption tax.

At a Government meeting on September 30, Minister of Planning and Investment Nguyen Chi Dung recommended extending the tax cut until mid-2024 saying the economy continued to face difficulties.

The cut would not only put more money in consumers’ pockets but also have a psychological impact that would stimulate demand and increase consumption, he said.

Bac Giang reforms tax procedures, facilitates citizens and businesses

(BGO) - The Bac Giang provincial Tax Department has recently paid due attention to reforming administrative procedures towards professionalism, transparency and efficiency, thereby creating favorable conditions for citizens and businesses to fulfill their tax obligations.

Taxation sector’s budget revenue reaches 36.6 billion USD in 7 months

The taxation sector’s total state budget revenue in the first seven months of 2023 was estimated at 868.6 trillion VND (36.6 billion USD), equal to 63.3% of the estimate, and 94.5% compared with that of the same period last year, the General Department of Taxation released on August 4.

4 out of 15 tax revenues exceed yearly estimate

(BGO) – Since early this year, 4 out of 15 tax revenues in Bac Giang province have exceeded the assigned yearly estimate, reported the provincial Taxation Department.

Tax collection from FDI enterprises exceeds yearly estimate

(BGO) – For the first six months of this year, the foreign direct investment (FDI) businesses in Bac Giang province has contributed nearly two trillion VND (85.3 million USD) to the budget collection, exceeding 19 percent of the yearly estimate.

Value-added tax cut welcomed

Consumers and producers are happy to see the implementation of the 2% reduction of value-added tax (VAT) for products starting from July 1.

Source: VnExpress