Vietnam has committed to reduce its current import duty level by 30 percent in a bid to join the World Trade Organisation (WTO), according to Nguyen Thi Bich, head of the International Cooperation Department under the Finance Ministry. The new tax level will be put into practise in five years since the country will soon officially become a WTO member, said Bich. During the country's negotiation process to join the WTO, Viet Nam proposed a new import tariff for 10,600 kinds of commodities, including garments and textiles, fishes and fish products, machinery, electric appliances, and electronics, said Bich as a member of the Vietnamese negotiation delegation. Vietnam's tax reduction commitment is being checked by WTO members, who joined negotiations with Vietnam in this field through Sept. 15. Then, the commitment will be made public. Other liberalisation trade agreements like the Common Effective Preferential Tariff (CEPT), the ASEAN Free Trade Area (AFTA) and the Free Trade Agreements … [Read more...] about Vietnam: import tax reduction on track
Vietnam import tax
The Ministry of Agriculture and Rural Development has asked the government to discourage the import of meat and animal products which can be made domestically. The overly low import tax has been considered the ‘chief culprit’ behind the overflow of meat, eggs and milk into Vietnam recently. Nguyen Xuan Duong, Deputy Head of the Livestock Husbandry Department under the Ministry of Agriculture and Rural Development (MARD), said that imports of meat and dairy products have become worryingly high recently and threatening local production. He went on to say that local production is facing big difficulties due to lack of capital, epidemics and higher feed prices. Meanwhile, local breeding farms cannot sell their products due to the massive imports. According to Duong, the prices of poultry meat and eggs have decreased, with chicken selling at VND23-24,000/kg and eggs at VND1,400-1,500/egg. Prof Nguyen Dang Vang from the Livestock Breeding Institute also said that Vietnam … [Read more...] about Animal product import tax increases proposed
The Vietnam Gas Association is seeking approval from the Government and the Ministry of Finance (MoF) to lower gas import tax from 5% to 2%. Consumers are hard hit by current skyrocketing gas prices According to the association’s chairman, Nguyen Si Thang, the proposal is expected to assist in cooling down the domestic gas market, as well as give consumers some assistance amid the current skyrocketing gas prices. Some gas firms in HCM City said they would be able to cut their retail prices by between VND8,000 and VND10,000 (USD0.38-USD0.47) per 12-kilo, if the proposal was approved. The import tax for gas was risen from 2% to 5% beginning on January 1. In order to ensure that consumers are protected, the association has requested that its members commit to lowering their prices as a result of the tax break. “The global gas market has recorded the highest price increase to date, of USD1,000 per tonne. Gas prices may see more fluctuations in time to come," Thang … [Read more...] about Decrease in import tax to lower retail price of gas
The Vietnam Gas Association has called on the government and the Ministry of Finance to cut the import tariff slapped on cooking gas from 5 percent to 2 percent, VGA chairman Nguyen Si Thang said Thursday. The move was made in a bid to reduce the current rising domestic cooking gas prices, which have recently skyrocketed to around to VND425,000-464,280 (roughly US$22) a 12-kilogram cylinder, Thang told Tuoi Tre. “Each 12-kg cylinder will be sold for VND7,000 lower than the current prices if our proposal is green-lighted.” Meanwhile, some gas suppliers in Ho Chi Minh City said if the import tax is lowered to 2 percent, retail prices can be reduced by VND8,000-10,000 a cylinder. Earlier, the import tariff was hiked up from 2 percent to 5 percent, and has been applied since January 1, 2012. VGA also said it will ask its members to guarantee the reduction of retail prices once the tax has been cut. “Global price has surpassed the record high of $1,000 a ton, yet is … [Read more...] about Cooking gas suppliers call for import tax cut
The Ministry of Industry and Trade has proposed raising the import tax rate on automobiles to 91 percent instead of the current 83 percent. The proposal has become a controversial issue for the relevant ministries, sectors and tax payers. The Ministry has asked the relevant sectors to give their opinions on the Government’s measures to control the trade deficit from now through the end of this year. Accordingly, the Ministry has proposed increasing the import tax rate on cars that carry fewer than passengers from 83 to 91 percent, abolishing stimulus measures for fully assembled vehicles with the capacity of 15 passengers and below and not reducing VAT and registration fees by 50 percent. Limit import surplus or protect domestic production? Explaining the proposal, the Ministry of Industry and Trade says that car imports are tending to rise sharply while exports are seeing almost no increase, leading to the trade deficit in July and August jumping to US$3 billion, … [Read more...] about Is import tax rate on automobiles likely to increase?