The government has asked the Ministry of Finance (MoF) to review and submit a proposal to the National Assembly (NA) to extend the value added tax (VAT) reduction of 2 per cent for a further six months, until mid-2024, the Voice of Vietnam (VOV) online newspaper has reported.

This is part of the Resolution from the government regular meeting on September 30, which was announced recently by the Office of the Government.

The government decided to cut the VAT rate by 2 per cent on goods and services subject to a 10 per cent rate from July 1 to December 31.

It said the policy is aimed at boosting consumption to increase production and trade and help businesses recover and develop to contribute to the State budget and the economy.

A similar VAT cut of 2 per cent last year helped support businesses and individuals and totaled some VND44.5 trillion ($1.87 billion).