HANOI - Vietnam's National Assembly, the country's lawmaking body, on Tuesday passed a resolution to extend a cut in the value-added tax (VAT) rate until the end of next year, state media reported.
Vietnam cut its VAT rate to 8% from 10% in early 2022 to support the economy after the coronavirus 2019 (Covid-19) pandemic, and has since extended it a number of times.
The lowered rate applies to most goods and services, with exceptions for telecommunication, financial, insurance, real estate and stock trading services and metal products, Vietnam News Agency reported.
The tax cut will cost 121.74 trillion dong (US$4.7 billion) in foregone revenue from July to the end of next year, the report cited a Finance Ministry report as saying.
United States President Donald Trump said earlier this year that value-added taxes in other countries carried a lot of blame for America's trade deficit.