The Ministry of Finance has proposed two options regarding value added tax (VAT) reductions on a number of goods and services in 2023, to promote economic development.

In the first option, the current 10 per cent VAT applied on a number of goods and services would come down to 8 per cent.

Under second option, the VAT would also be reduced by 2 per cent from the current 10 per cent but exclude goods and services already affected by previous VAT reductions as part of government policy to boost post-pandemic economic recovery.

The ministry has proposed implementing the tax cuts for six months, from July 1 to December 31.

Last year, from February 1 to December 31, VAT was cut from 10 per cent to 8 per cent for most goods and services under Decree No. 15 from the government.