The Government proposed to extend the implementation period of the 2% reduction in value added tax.

On the afternoon of May 28, the National Assembly discussed in the hall the Draft Resolution of the National Assembly on reducing value-added tax and the Draft Resolution of the National Assembly amending and supplementing a number of articles of the Internal Regulations of the National Assembly session issued together with Resolution No. 71/2022/QH15 of the National Assembly.

Vice Chairmen of the National Assembly Nguyen Khac Dinh and Nguyen Duc Hai chaired the meeting.

During the period from 2022 to the first 6 months of 2025, the National Assembly has resolved to reduce the VAT rate by 2% for groups of goods and services currently applying the VAT rate of 10% (to 8%), except for some groups of goods and services. The VAT reduction solution, along with other tax, fee and charge support solutions, is creating great conditions to help businesses reduce production costs, increase profits and increase the ability to stimulate demand.

Accordingly, in 2022, the implementation of the VAT reduction policy under Resolution No. 43/2022/QH15 has supported businesses and people with a total of about 51.4 trillion VND, contributing to stimulating increased domestic consumption, with total retail sales of goods and consumer service revenue in 2022 increasing by 19.8% compared to 2021.

In 2023, the 2% VAT reduction under Resolution No. 101/2023/QH15 in the last 6 months of 2023 has supported businesses and people with a total of about 23.4 trillion VND. In general, in 2023, total retail sales of goods and consumer service revenue increased by 9.6% compared to 2022.

In 2024, the 2% VAT reduction under Resolution No. 110/2023/QH15 and Resolution No. 142/2024/QH15 has supported businesses and people with a total of about VND 49 trillion. In general, in 2024, total retail sales of goods and consumer service revenue increased by 9.0% compared to 2023.

In the first 3 months of 2025, the amount of VAT reduced according to Resolution No. 174/2024/QH15 is estimated at about 9.3 trillion VND. Total retail sales of goods and consumer service revenue is estimated at 1,708.3 trillion VND, up 9.9% over the same period last year.

The results show that the 2% VAT reduction policy has contributed to promoting production and business of enterprises, consumption of people, creating more jobs for workers and achieving the set goal when building the VAT reduction policy which is to stimulate consumption, promote production and business development.

To consolidate and prepare well the fundamental factors to successfully implement the 10-year Socio-Economic Development Strategy (2021 - 2030), marking the time when the country enters a new era of development, GDP growth in 2025 reaches 8% or more, contributing to creating a solid foundation to achieve a double-digit growth rate in the period 2026 - 2030, on the basis of the requirement to continue maintaining macroeconomic stability, controlling inflation, ensuring major balances; harmonious development
between economy and society and environmental protection, ensuring national defense and security.

Accordingly, to contribute to creating momentum to promote and develop the economy, support people and businesses, promote production, business, tourism and domestic consumption in 2025 and 2026, the Government proposes to continue implementing the VAT reduction policy.

According to the Draft Resolution, the scope of application includes: A 2% reduction in value added tax rate, applied to groups of goods and services currently applying a tax rate of 10% (to 8%). Except for some groups of goods and services such as: Telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline). The period of application of the 2% value added tax reduction according to the draft resolution is from July 1, 2025 to December 31, 2026.

Discussing at the meeting hall, the majority of delegates agreed with the necessity of issuing a Resolution to continue applying the VAT reduction policy for the last 6 months of 2025 and the whole year of 2026 as proposed by the Government.

In the context that the domestic economy is facing many difficulties and challenges; the world economy has many unpredictable fluctuations; the general principles in economic relations and international trade are broken, affecting the ability to ensure export targets. Therefore, continuing to issue this policy can be seen as a measure aimed at domestic consumption to promote growth, contributing to achieving the proposed 8% growth target.

Also in the afternoon session, the National Assembly discussed in the hall the Draft Resolution of the National Assembly amending and supplementing a number of articles of the Internal Regulations of the National Assembly session issued together with Resolution No. 71/2022/QH15 of the National Assembly.

The amendment and supplementation of the Rules of Procedure for the 2022 National Assembly session aims to thoroughly grasp and fully institutionalize the Party's policies and guidelines, especially the policies and guidelines on building and perfecting the socialist rule-of-law state, innovating the organization and improving the quality of the National Assembly's activities, and innovating thinking in building and perfecting the legal system...

Ensure consistency between the National Assembly Session Rules and the newly amended contents of the Law on Organization of the National Assembly, the Law on Promulgation of Legal Documents and related laws; ensure consistency with the organization, functions and tasks of agencies after implementing the organizational arrangement.