On the morning of April 23, continuing the 44th session, the National Assembly Standing Committee gave opinions on the draft Resolution of the National Assembly on reducing value-added tax (VAT) for the last 6 months of 2025 and the whole year of 2026.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai expressed his opinion at the meeting.

PHOTO: GIA HAN

Proposal to reduce VAT until the end of 2026, reducing budget revenue by 121,740 billion VND

The draft resolution stipulates a 2% reduction in VAT rates for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for the following groups of goods and services: telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline).

Applicable period from July 1 to December 31, 2026.

Compared to before, the groups of goods and services proposed for VAT reduction have been expanded to include information technology products and services, prefabricated metal products, coke, refined petroleum, chemical products, imported coal and coal sold in commercial business, gasoline and oil.

Regarding the impact on state budget revenue, Deputy Minister of Finance Cao Anh Tuan said that the expected reduction in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about 121,740 billion VND. Of which, the reduction in the last 6 months of 2025 is about 39,540 billion VND, and in 2026 it is about 82,200 billion VND.

During the review, Chairman of the Economic and Financial Committee Phan Van Mai reflected that the majority of opinions in the Standing Committee agreed with the necessity of issuing a Resolution to continue applying the VAT reduction policy for the last 6 months of 2025 and the whole year of 2026. The Standing Committee also agreed with the proposal to expand the subjects eligible for VAT reduction for a number of groups of goods and services as proposed by the Government.

Mr. Phan Van Mai also cited the opinion that the continuous extension and prolongation of the implementation of the tax reduction policy creates a bad precedent, making the tax policy unstable and inconsistent.

In addition, narrowing fiscal and policy space will reduce the ability to respond to more serious economic crises in the future.

Mr. Mai analyzed that with the expected reduction in budget revenue of about VND 39,540 billion from the implementation of the VAT reduction policy but not yet included in the state budget estimate for 2025, along with newly arising budget expenditures and other revenue reduction policies in new resolutions to be issued, newly approved projects, it may affect the assurance of revenue estimates and budget deficit in 2025 as well as the construction of the budget estimate for 2026.

Deputy Prime Minister Ho Duc Phoc said that about 170,000 billion VND is needed to pay for officials who quit their jobs or retire early due to streamlining the apparatus.

PHOTO: GIA HAN

Money paid to officials who quit their jobs or retire early from the salary fund and budget

Chairman of the Economic and Financial Committee Phan Van Mai requested Deputy Prime Minister Ho Duc Phoc to direct government agencies to evaluate revenue and expenditure to balance the budget in the coming years.

"This is important. The VAT reduction content here we see is also in the hundreds of thousands. If we add up the reduction in revenue by hundreds of thousands and the arising expenses also in the hundreds of thousands, it adds up to a very large number. Meanwhile, our budget revenue is about 2 million billion. The ratio of arising expenses is quite large compared to the total revenue. So we need this number soon," said Mr. Mai.

Reporting at the meeting, Deputy Prime Minister Ho Duc Phoc said he would assign the Ministry of Finance to synthesize and report to the National Assembly Standing Committee and the National Assembly Chairman.

"Actually, this year's budget expenditure will increase because we are streamlining the apparatus. Just the payment for officials who quit their jobs or retire early is more than 100,000 billion, it seems to be 170,000 billion, according to incomplete statistics," said Mr. Phuc.

In addition, Deputy Prime Minister Ho Duc Phoc said that exempting tuition fees for students nationwide will cost about VND30,000 billion. In the near future, a number of policies on health insurance and other policies will be implemented, so budget expenditures may increase.

According to the Deputy Prime Minister, this July the Government will guide the preparation of the 2026 budget and the next term will report a full forecast of spending capacity. "This year is still bearable," the Deputy Prime Minister said, adding that the severance pay and streamlining of the apparatus will be used in the long-accumulated salary fund and at the same time use resources from the budget.

Thanhnien.vn

Source: https://thanhnien.vn/can-170000-ti-chi-tra-cho-can-bo-thoi-viec-nghi-huu-som-do-tinh-gon-bo-may-185250423104021363.htm