The Vietnamese government on Wednesday presented a proposal to the National Assembly to cut VAT from 10 to 8% to boost economic recovery.
The government seeks to impose the policy in the last six months of this year, though it does not cover a number of sectors, including property, banking, securities, insurance, and telecommunications.
Le Quang Manh, chairman of the National Assembly’s Finance and Budget Committee, said that some lawmakers proposed that all sectors be eligible for the tax discount, as many were facing difficulties.
Others suggested that the tax be brought down to 6%.
Lawmakers want the government to evaluate more carefully the impact of the tax rebate, which is expected to cost the government $1.02 billion.
They also urged authorities to speed up the VAT refund for businesses, especially manufacturing companies such as wood exporters, who are waiting to be refunded hundreds of billions of dong.
On the sidelines of the ongoing National Assembly session, lawmaker Le Thanh Van voiced support for the tax rebate and called for deeper VAT cuts to 3-5%.
The rebate will help stimulate growth, he said.
“Companies will gain more profits and in return will submit more tax,” he added
Other lawmakers want the rebate to be extended throughout 2024 to give businesses more time to stabilize.
