Deputy Prime Minister Trinh Dinh Dung has approved proposal to remove policy of stamping beer products which stirred public concerns over years.

The Ministry of Industry and Trade (MoIT) last week said that the deputy PM approved its proposal to stop the policy which could cost businesses VND1.7 trillion (US$74.9 million) a year if it took effect.

On October 23, the ministry submitted a document to the PM to stop implementation of the policy which should have taken effect from the beginning of 2014 if the draft decree was approved.

Previously in 2011, MoIT together with other ministries and agencies studied a draft decree to improve the State’s ability to manage beer production and trading to tackle illicit and counterfeit beer, which caused the budget a loss of VND3 trillion ($132 million) a year.

They proposed to stamp all locally made and imported beer products before they are sold in the market.

This solution was supposed to help the State increase budget revenue over VND2 trillion and fight against illicit and counterfeit goods.

However, the ministry has not reconsidered the solution, finding it might increase costs for businesses.

MoIT’s calculation showed that the beer stamping policy could cost beer producers VND1.7 trillion a year, putting burden on businesses and increase beer product prices.

Nguyen Van Viet, chairman of Viet Nam Beer Alcohol Beverage Association said businesses would have to invest into equipment to stamp products, thus increasing their spending and reducing profits and contribution of corporate income tax to the State budget. — VNS