The tax break will last until the end of other year, according to a government decree issued Friday.

Customers look at clothes at a mall in Ho Chi Minh City, November 26, 2021.

Some sectors that will not be eligible for the tax break are communications, information and technology, finance, banking, securities, insurance and real estate, which have not been affected by the pandemic.

The tax break is set to reduce government revenue by VND49.4 trillion ($2.18 billion).

The reduced VAT is part of the VND350 trillion stimulus package that lawmakers approved earlier this month to revive the economy.

The proposed 3 percent tax waivers and deferrals for businesses and 2 percent cut in value-added tax would help encourage consumption, and this could help the country bounce back from the "massive shock" of the third quarter last year, said Dorsati Madani, senior economist, World Bank Vietnam.

The bank forecasts Vietnam’s GDP growth this year at 5.5 percent, against the country’s target of 6-6.5 percent.

Monetary policies aid socio-economic recovery and development

A resolution on fiscal and monetary policies supporting the socio-economic recovery and development programme was ratified at the 15th National Assembly’s first extraordinary session (January 4 -11, 2022).

Legislature approves stimulus package to boost recovery

The National Assembly has approved an economic stimulus package that involves cutting value added tax by 2 percentage points and pumping VND176 trillion ($7.75 billion) into development.

Government’s three recovery focuses for 2022

Reviving the business sector, boosting exports, and increasing disbursement of public spending are key to achieving the economic growth target of 6-6.5 percent for 2022, the government has said.

Quang Ninh’s “Green-lane” plan to recover tourism in 2022

The Department of Tourism of Quang Ninh has completed a draft plan called “Green-lane tourism” to revive the Covid-19-stricken tourism in the northern coastal province.

Source: VnExpress