Plastics, steel face more tax
Plastics, steel face more tax
Viet Nam would raise import duties for plastics and steel under plans announced by the Ministry of Finance (MoF) on Wednesday.
The announcements came as the Ministry opened consultation with authorities and businesses on the proposed tax hikes.
The move will see plastics (unsaturated polyester) import duties raised to 5 per cent from the current zero per cent rate; while steel wire and steel bar duties will rise to 3 per cent and 10 per cent respectively.
Domestic plastic enterprises have alleged plastic importers have side-stepped import taxes on plastics by declaring goods as "other polyesters" which carry a zero per cent rate; creating an unfair playing field for local producers.
Domestic companies complained to MoF, pushing the proposal to raise import taxes.
MoF clarified that polyester was only taxed zero per cent in liquid or paste form, although customs declarations have shown that polyester has been declared in "debris" and "other" forms to exploit the lax import duty.
MoF has criticised these kinds of customs declarations as ‘commercial fraud' and is backing the plans to protect domestic production and crack down on fraud.
Similar plans will be put into place to protect local steel makers who have also come under pressure from importers exploiting loopholes in import taxes.
Currently, only one category of steel is taxed with a 10 per cent duty, while the remainder are taxed at a rate of zero per cent.
The Ministry has vowed to raise import taxes across all four steel categories in an effort to boost domestic production and shield domestic companies from imported products.
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