The Ministry of Finance has collected ideas from ministries andbusinesses on reducing the export tax for natural rubber products tomake life easier for enterprises currently faced with high inventoriesand decreasing selling prices.
After gatheringfeedback, the ministry has proposed to reduce the export tax forcondensed latex rubber and mixed rubber from the current 3 percent and 5percent rates to 1 percent. However, the tax ratio of other naturalrubber products is set to be raised from zero percent to 1 percent.
The Vietnam Rubber Association has been one of many voices calling forthe ministry to exempt export taxes for all natural rubber products.
It said the move was important because prices fromrubber exports had sharply reduced. The price last year was 2,795 USDper tonne, representing a 30 percent decrease over 2011 when the pricehit a highest level of 4,562 USD per tonne. The export tax took effectin 2011.
In the first seven months of this year,rubber prices continuously fell. The average price in the first quarterwas 2,685 USD per tonne, 41 percent lower than the highest level in 2011and a reduction of 8 percent year-on-year.
Theassociation said the low price will remain for the next few years due tothe global economic downturn, high inventories and increasing supply asother countries have expanded their rubber production.
It added that 83 percent of Vietnam's total annual natural rubberoutput was exported. The export price by the end of this year wasforecast to reach at least 2,300 USD per tonne, much lower than that of2011.
The tax will limit exports of rubberbusinesses, therefore reducing the competitiveness of Vietnamese rubbercompared with neighbouring countries, it said.
LuuDuc Huy, deputy director of the ministry's Tax Policy said they havefinished the circular draft to amend the export tax, adding that if therelated ministries and agencies agree to the changes, they will beimplemented without delay.
Currently, the inventorylevels of the Vietnam Rubber Industry Group stand at about 60,000tonnes. By the end of the year, the volume is expected to reach 200,000tonnes.-VNA
After gatheringfeedback, the ministry has proposed to reduce the export tax forcondensed latex rubber and mixed rubber from the current 3 percent and 5percent rates to 1 percent. However, the tax ratio of other naturalrubber products is set to be raised from zero percent to 1 percent.
The Vietnam Rubber Association has been one of many voices calling forthe ministry to exempt export taxes for all natural rubber products.
It said the move was important because prices fromrubber exports had sharply reduced. The price last year was 2,795 USDper tonne, representing a 30 percent decrease over 2011 when the pricehit a highest level of 4,562 USD per tonne. The export tax took effectin 2011.
In the first seven months of this year,rubber prices continuously fell. The average price in the first quarterwas 2,685 USD per tonne, 41 percent lower than the highest level in 2011and a reduction of 8 percent year-on-year.
Theassociation said the low price will remain for the next few years due tothe global economic downturn, high inventories and increasing supply asother countries have expanded their rubber production.
It added that 83 percent of Vietnam's total annual natural rubberoutput was exported. The export price by the end of this year wasforecast to reach at least 2,300 USD per tonne, much lower than that of2011.
The tax will limit exports of rubberbusinesses, therefore reducing the competitiveness of Vietnamese rubbercompared with neighbouring countries, it said.
LuuDuc Huy, deputy director of the ministry's Tax Policy said they havefinished the circular draft to amend the export tax, adding that if therelated ministries and agencies agree to the changes, they will beimplemented without delay.
Currently, the inventorylevels of the Vietnam Rubber Industry Group stand at about 60,000tonnes. By the end of the year, the volume is expected to reach 200,000tonnes.-VNA
