Export tax on sliced cassava cut hinh anh 1The Dong Xuan - Phu Yen cassava starch processing factory in central Quang Ngai Province. Photo: VNA

The export tax for sliced cassava was reduced from 5 percent to zero last weekend after the Finance Ministry released Circular No. 141 on revising the tax.

The decision was issued after receiving approval, in principle, from the Prime Minister. The ministry said they would cooperate with the relevant agencies to change tariffs for the exported cassava products in the coming period. It will also evaluate ways of gradually increasing the export tariffs for cassava to match the plan for E5 bio-fuel production and consumption.

On May 6, 2015, the ministry issued Circular No. 63/2015 to increase the tax to five percent, aiming to ensure the supply of sliced cassava, the main material for E5 bio-fuel production.

However, the tax level created difficulties for enterprises and farmers. Last year, Vietnam imported more than 1 million tonnes of cassava and exported some 2 million tonnes of sliced cassava.-VNA