Hanoi: The National Assembly (NA) Standing Committee discussed a draft resolution regarding the continued reduction of value-added tax (VAT) for the latter half of 2025 and the entire 2026 during its 44th session on April 23. Presenting the Government's proposal, Deputy Minister of Finance Cao Anh Tuan emphasised the necessity of extending the VAT reduction policy to support economic recovery and development, encourage domestic consumption and tourism, and ease pressure on businesses and citizens alike.

According to Vietnam News Agency, the proposed extension of the VAT reduction is seen as a crucial measure to stimulate the economy by reducing the financial burden on consumers and businesses. The policy is expected to enhance domestic spending, which in turn could lead to increased production and job creation in various sectors, particularly in the tourism industry, which has been significantly impacted in recent years.

The draft resolution has garnered attention as stakeholders anticipate how the policy might influence economic trends in the coming years. The discussion underscored the government's commitment to fostering a conducive environment for economic growth and stability. As the NA Standing Committee deliberates on this proposal, the potential benefits and challenges of the VAT reduction will be closely examined to ensure that the policy achieves its intended objectives.