Government proposes 2-pp VAT reduction on select goods and services until 2026

Government proposes 2-pp VAT reduction on select goods and services until 2026

A 2-percentage-point reduction in the value-added tax (VAT) for goods and services will lead to a decrease in state revenue by approximately 121.74 trillion VND (over 4.69 billion USD) over the proposed period. This includes an estimated 39.54 trillion VND in the second half of 2025 and 82.2 trillion VND in 2026.

Strong growth recorded in revenue from retail, services

Revenue from retail sales of goods and services totalled about 515.8 trillion VND (21.87 billion VND) in December and over 1.54 quadrillion VND (65.3 billion USD) in the fourth quarter of 2022, a year on year rise of 17.1%, reported the General Statistics Office (GSO).

July’s retail sale of goods, services surges

Vietnam’s retail sale of goods and services in July is estimated at 486 trillion VND (20.8 billion USD), up 2.4% m-o-m, and 42.6% y-o-y, according to the General Statistics Office (GSO).
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