A prominent issue for many Vietnamese businesses concerns the proposed narrowing of the 0 per cent VAT rate for export services.
Having encountered quite fierce protests from many organizations about the proposal to impose value added tax (VAT) on the transfer of land use rights, the Ministry of Finance (MoF) confirmed that it would not impose the tax.
Due to strong opposition against the proposal on raising value added tax (VAT), the Ministry of Finance (MoF) has recently proposed to delay the VAT increase to 11 per cent until from January 01, 2019 and to 12 per cent until January 01, 2020.
According to Associate Professor, Dr Ngo Tri Long, former head of Price and Market Research Institute under the Ministry of Finance, reasons put forward by the Ministry to increase value added tax (VAT) are inappropriate and unconvincible.
The Ministry of Finance (MoF) has recently proposed to increase the value added tax (VAT) from 10% to 12%, effective from January 1st, 2019. It is estimated that more than half a million businesses and most of the people will be affected by the VAT increase.
