HA NOI – After scrutinising recommendations from relevant associations, the Ministry of Finance yesterday said it would not impose the previously proposed export tax of 3 per cent on steel and 5 per cent on cement at this time.

The ministry last month submitted a proposal to the Government that called for export taxes on steel and cement, saying that neither currently had taxes governing their export, while the industries were benefiting from low domestic electricity prices.

However, after closely reviewing the difficulties that steel and cement producers face due to higher input costs and low domestic demands, the ministry changed its mind. It decided not to tax the products at this time so as to ease exports of the domestic producers.

The ministry reported that the Government's measures to control inflation result in many construction works delaying their projects, which then cause the cement and steel industries to burden a large product volume in stock.

Deputy chairman of the Viet Nam Steel Association, Nguyen Tien Nghi said steel producers this year suffered a stockpile of roughly 420,000 tonnes, double that of previous years.

A similar situation occurred with cement producers, said the Viet Nam Cement Association's Administration Office, Nguyen Van Diep. He added that cement supply had far exceeded demand and that cement producers were dealing with large volumes of stock, necessitating tax exemptions in order to encourage the export of surplus stock.

July 28, 2011

Source: vietnamnews.vnagency.com.vn