Government excludes property, banking sectors from VAT rebate proposal

🚫 The government has excluded property, banking, securities, insurance, and telecommunications from the list of sectors to be given a 2% value-added tax rebate in July-December this year.

🛢️ Others to be excluded from the list are mining, oil refining, chemicals, and all goods subject to special consumption tax.

📃 The proposal, if approved by the National Assembly, will reduce the VAT rate from 10% to 8%, and seeks to boost the economy whose growth fell to 3.3% in the first quarter, the lowest in 12 years.

📉 The rebate will directly benefit consumers, who will pay 2% less for most goods and services. It is expected to cost the government’s coffers VND24 trillion. Last year too the government had provided a similar rebate to revive an economy affected by Covid.

🛒Retail and services revenues increased by nearly 20% last year and VAT collections rose by 10%, albeit from low bases.

Source: https://vietnam-b2b.com/zasn