Government excludes property, banking sectors from VAT rebate proposal

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.

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

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.