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Vietnamese business groups call for expanded VAT cuts

The Food and Foodstuff Association (FFA) of HCM City has joined many associations in Vietnam that are calling on the government to extend the value-added tax (VAT) cuts of 2% until late 2023. The FFA said the VAT cut is a lifebuoy keeping firms afloat during the pandemic. It, however, expired late December 2022. The association called for the expiration date to be pushed back to December 31, 2023, to give firms more time to recover. The Vietnam Beer-Alcohol-Beverage Association (VBA) shares the FFA's view, saying that beverage firms were having a hard time dealing with the global energy crisis, growing interest rates and high inflation. Over the years, the VAT cuts were widely regarded among firms as a timely policy that gave fresh impetus to their post-pandemic recovery, stabilised prices, and stimulated domestic demand.


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