A number of lawmakers proposed extending the application of a 2 per cent reduction in the value added tax (VAT) rate to 2024, in order to ensure the stability and efficiency of the policy, during discussions on May 24 at the ongoing fifth session of the 15th National Assembly (NA).

Earlier this year, the government recommended cutting the VAT rate by 2 per cent from July 1, 2023, to the end of the year as the domestic and global situation is forecast to continue facing more problems, according to Minister of Finance Ho Duc Phoc.

Chairman of the NA’s Finance-Budget Committee Le Quang Manh said the issuance of the policy is necessary to continue supporting the production and trade of businesses and individuals who still encounter many difficulties following Covid-19 amid the context of the economic downturn in the fourth quarter of 2022 and particularly the early months of 2023.

Mr. Manh said most members of the Committee approved the government’s proposal to further support businesses and individuals in recovery and development.