HÀ NỘI — The Vietnam Banks Association (VNBA) has proposed a 2 per cent value-added tax (VAT) reduction for credit institutions because the institutions are currently facing difficulties, with their non-performing loans and potentially risky debts tending to increase significantly. The VNBA made the move last week as, under a draft policy on VAT reduction for the first six months of next year, the credit institutions do not feature in the list of commodities and services that will receive the benefit. According to the VNBA, it agrees with the content of the draft policy to reduce VAT by 2 per cent in the first half of 2024, but proposes credit institutions be added to the list of commodities and services that will receive the 2 per cent VAT cut. According to the VNBA, the operations of credit institutions are currently very difficult. To create conditions for the institutions to have more resources to support firms and invest in digital transformation technology, ensuring security and safety in operations, the VNBA therefore has proposed adding the credit institutions to the list of commodities and services that will receive a 2 per cent VAT reduction next year.

Source: Viet Nam News October 30, 2023 01:43 UTC