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Thousands of additional goods have had their VAT rates halved until the end of the year, the Ministry of Finance has announced.

Under Circular 91/2009/TT-BTC, VAT on goods for production and consumption drops to 5 per cent from February 1 to December 31.The circular said goods entitled to the tax reduction include knives and cutting blades used for machines or mechanical tools, welding rods, water tanks with a capacity of more than 300 litres, steam boilers and turbines.

Refrigeration equipment, ice machines and other freezing equipment, equipment used for workshops or laboratories, liquid or gas refining machines and equipment, agriculture machines, gardening machines, milking machines and milk processing machines, printers, copiers and fax machines are also subject to the tax reduction. Importers who paid VAT on goods entitled to the tax reduction can ask the customs department for a refund.

The Ministry of Finance said the 50 per cent VAT reduction is aimed at stimulating investment and consumer demand, while easing the burden of the economic downturn on importers.

In February, the Minister of Finance issued Circular 85/2009/TT-BTC that cut VAT by 50 per cent on 19 groups of goods and services. They included computers, cars and car parts along with the tourism and hotel services.

Source: VNBusinessNews