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Vietnam's finance ministry seeks to reduce VAT on various goods

The Ministry of Finance in Vietnam has submitted a proposal to the government to reduce the value-added tax (VAT) from 10% to 8% on a range of goods and services to stimulate economic growth. The government is considering two options for the VAT reduction. The first is a 2% cut in the current 10% VAT on various goods and services. The second option also includes a 2% reduction in VAT but excludes goods and services that were previously reduced as part of a government policy to boost economic recovery after the COVID-19 pandemic. The proposed VAT reduction has received support from various industry associations, including the HCM City Food and Foodstuff Association, the Vietnam Beverage Association, and the European Chamber of Commerce. They have urged the government to extend the policy to provide additional support to businesses struggling with economic challenges.

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