Most lawmakers said a tax cut is a necessary solution, contributing to lowering product prices, stimulating consumer demand and production, creating jobs, rebooting the economy, and ensuring social security.

According to public opinion, reducing VAT by 2% will promote consumption in the domestic market of 100 million people, create a push for businesses to recover, and regain production momentum this year and beyond.

Vu Xuan Truong, a lecturer and brand specialist at the Faculty of Marketing, Thuong Mai University, said that this solution will nurture sustainable revenue for the state budget. 

“From the supply-side perspective, reducing VAT to 8% will boost production. It’s clear that when prices fall, consumers will be better motivated. When consumers have the desire to buy more products, the products supplied to the market will have more reasonable prices. The policy is suitable for the post-pandemic context when consumers must tighten their spending and look for affordable items,” said Truong.

A 2% reduction in VAT will have a wide impact. If passed, consumers will be direct beneficiaries.