MoF may increase export tax on woodchips

Saturday, Jun 08, 2013 12:25

HA NOI (Biz Hub)— The Ministry of Finance is collecting opinions on a tentative scheme to increase the export tariff on woodchips from 0 per cent to 5 per cent.

Limiting woodchip exports as proposed by the Ministry of Industry and Trade was necessary to avoid exploiting young timber and to reserve materials for domestic production, the ministry said.

Although exporting woodchips helps forest planters earn a higher price, they are still a raw material, so exporting them is inefficient, according to the Ministry of Industry and Trade.

Last year, the paper industry needed around 822,000 tonnes of pulp, with around 480,000 tonnes supplied by over 50 local plants and the rest imported.

According to the General Department of Customs, woodchip exports have increased steadily over the years, going from 4.13 million tonnes worth US$459.5 million in 2010 to 6.1 million tonnes worth $827.6 million this year.-VNS

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