Vietnam: Ministry to revise tariffs for next year

HA NOI — The Ministry of Finance is gathering recommendations on a draft for import and export tariffs for 2012.

The changes related to export in the draft were minor so the country's exports would not be significantly impacted, the ministry said.

The ministry said it was looking into cutting the export tax on coal from the current 20 per cent. Although details about the reduction were not provided, the cut was expected to be modest because a high tax would help restrict exports to meet the country's rising demand for coal.

Export taxes on processed limestone are also expected to be cut from the current 17 per cent to 14 per cent. A 17 per cent tax rate will remain in place for unprocessed limestone.

The draft also calls for import taxes to be cut on more than 1,000 items to meet the country's commitments with the World Trade Organisation.

Import taxes on meat and by-products will be cut by 1-3 per cent from the current 12-26 per cent. The ministry said it expected the new rates, which were equal to the ceiling rates regulated by the WTO, would still help the domestic breeding industry develop.

"Import taxes on animal feed, which are low at 0-3 per cent and expected to remain unchanged next year, will help the breeding industry develop," the ministry said, adding that application of the new tariff would minimise the negative impacts on the industry.

October 29, 2011

Source: VNS