Ministry announces goods exempt from tax under TPP
Ministry announces goods exempt from tax under TPP
The Ministry of Finance yesterday officially announced the list of goods which would enjoy tax reduction when the Trans-Pacific Partnership (TPP) is signed and comes into effect.
The ministry said the TPP's members committed highly open to Viet Nam. Around 78 to 95 per cent of taxes would be removed as soon as the pact takes effect. The taxes on the remaining goods would be removed within five to 10 years, excluding some sensitive goods.
Several Vietnamese key export items in the TPP market such as agricultural products, seafood, garments and textiles, and shoes, in addition to wooden furniture, electronics and rubber, would enjoy zero tax as the pact comes into effect, three to five years later.
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In terms of imported taxes, Viet Nam commits to apply a common tariff for all the TPP members, of which, 65 per cent of tariffs would be removed for the products of animal feed, milk, rice, and leather, apart from leather products, cotton, garments and textiles, and fertilisers. Cosmetics, machines, equipment, and wooden furniture would also see a 65 per cent reduction in tariffs. Around 98 per cent of tariffs would be removed after 10 years, while the remaining goods would have a roadmap of more than 10 years or applying Tariff-rate Quota (TRQ).
In terms of export taxes, Viet Nam is committed to removing tariffs for most items having export tax applied under the 5 to 15 year road map after the pact comes into effect. Some important products would continue to retain the tax.
The ministry said the TPP's members had completed technical reviews and necessary procedures for preparation of the official scheduled signing at the beginning of 2016.
