HANOI (Reuters) -Vietnam’s government is seeking to extend a 2 percentage point cut in its value-added tax rate until the end of next year to support economic growth, state media reported on Tuesday.
Finance Minister Nguyen Van Thang on Tuesday submitted a plan to extend the tax cut, which was due to end on June 30, to the parliament for approval during its current session, Nhan Dan newspaper reported.
“The VAT cut needs to be extended to promote economic growth, support families and businesses, boost manufacturing, tourism and domestic consumption,” Thang was quoted as saying, adding it would cost 121.74 trillion dong ($4.7 billion) in foregone revenue.
Vietnam cut its VAT rate to 8% from 10% in early 2022 to support the economy after the COVID-19 pandemic, and has since extended it a number of times.U.S. President Donald Trump said earlier this year that VAT carried a lot of blame for America’s trade deficit.
($1 = 25,951 dong)
(Reporting by Khanh VuEditing by Alasdair Pal and John Mair)
