The National Assembly (NA) has decided to again cut the value added tax (VAT) rate by 2 per cent on goods and services subject to a 10 per cent rate from July 11 until year’s end.

Under the resolution adopted by the NA on June 24, the reduction will not apply to the following goods and services: telecommunications, financial activities, banking activities, securities, insurance, trading of real estate, metals, precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products, and goods and services subject to excise taxes.

Earlier, in its proposal on cutting the VAT submitted to the NA for approval, the government said the policy is aimed at boosting consumption demand to accelerate production and trade and help businesses recover and develop to contribute to the State budget and the economy.

In 2022, the VAT cut of 2 per cent helped support businesses and individuals and totaled some VND44.5 trillion ($1.87 billion), contributing to spurring production and business, generating jobs, stimulating consumption, and raising State budget collections.