MOF mulls increasing import tariffs

Wednesday, Oct 30, 2013 16:53

HA NOI (Biz Hub) — The Ministry of Finance (MOF) has called for submissions from government agencies on a proposal to raise import tariffs in line with the nation's World Trade Organisation (WTO) commitments.

The Ministry of Finance expects to raise import tariffs for 462 product lines to meet World Trade Organisation (WTO) commitments. Photo

In a move that could also provide a boost to domestic production, the ministry is expected to increase import tariffs for around 462 product lines, while tariffs on the remaining 2,963 products will not change; including products from the agriculture, forestry and fisheries sectors.

Taxes on imported materials able to be produced in Viet Nam, will increase two to three per cent, in a bid to encourage local production and rein in the nation's trade deficit.

The proposal will also see import duties raised from zero to 3 per cent on some crude minerals that are imported or mined for immediate export; to encourage onshore processing and the use of domestic minerals.

Tax rates below the ceiling rates stipulated in the nation's looming WTO commitments will also be adjusted between 0.5 and 1 per cent, while taxes for products on the import quota list will be increased five to ten per cent to lift the nation's balance of trade.

The MOF commented that the changes would not affect business operations in Viet Nam and would allow the country to meet its WTO commitments by 2014.

The reforms will also align with the tax framework regulated by the National Assembly Standing Committee. — VNS

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