Members of the Vietnam Coffee and Cocoa Association (Vicofa) have agreedto petition the Government to scrap the 5 percent value-added taximposed on coffee exporters for a year starting in November.
It is aimed at plugging a loophole, which has caused a loss of revenuefor the Government and created unhealthy competition among enterprises,Do Ha Nam, Vicofa deputy chairman, told a meeting in Ho Chi Minh Cityon September 24.
Many traders evade the tax and soare willing to pay higher prices to farmers, pricing real export firmsout of the market. The traders do not export themselves but resell toexporters.
If the problem is not resolved, thecountry's coffee exports would be affected since no one would dareexport, Nguyen Thi Ngoc Mai, general director of coffee exporterPacksimex Company, said.
Conference participantsalso agreed to petition the Ministry of Finance to hold a dialogue withthem on tax policy. Luong Van Tu, Vicofa chairman, said besidesresolving the VAT issue, "the Government should consider allowing thesector to stockpile 200,000-300,000 tonnes of seeds to sustain coffeeprices in the domestic market."
To ensuresustainable development of the coffee industry, he said "the industrymust replant old and stunted coffee trees, which currently account for30 percent of all trees." Coffee firms should focus more on improvingprocessing technology to add value to their products, he said.
Nam called on the Ministry of Agriculture and Rural Development andthe association to establish close ties with their counterparts in othermajor coffee producing countries to share information. Associationmembers should work together to boost development of the industry, headded.
Vietnam's coffee exports from the 2012-13crop - from October last year to the end of this month – have fallen interms of both volume and value, with 1.4 million tonnes being exportedfor 2.8 billion USD.-VNA
It is aimed at plugging a loophole, which has caused a loss of revenuefor the Government and created unhealthy competition among enterprises,Do Ha Nam, Vicofa deputy chairman, told a meeting in Ho Chi Minh Cityon September 24.
Many traders evade the tax and soare willing to pay higher prices to farmers, pricing real export firmsout of the market. The traders do not export themselves but resell toexporters.
If the problem is not resolved, thecountry's coffee exports would be affected since no one would dareexport, Nguyen Thi Ngoc Mai, general director of coffee exporterPacksimex Company, said.
Conference participantsalso agreed to petition the Ministry of Finance to hold a dialogue withthem on tax policy. Luong Van Tu, Vicofa chairman, said besidesresolving the VAT issue, "the Government should consider allowing thesector to stockpile 200,000-300,000 tonnes of seeds to sustain coffeeprices in the domestic market."
To ensuresustainable development of the coffee industry, he said "the industrymust replant old and stunted coffee trees, which currently account for30 percent of all trees." Coffee firms should focus more on improvingprocessing technology to add value to their products, he said.
Nam called on the Ministry of Agriculture and Rural Development andthe association to establish close ties with their counterparts in othermajor coffee producing countries to share information. Associationmembers should work together to boost development of the industry, headded.
Vietnam's coffee exports from the 2012-13crop - from October last year to the end of this month – have fallen interms of both volume and value, with 1.4 million tonnes being exportedfor 2.8 billion USD.-VNA
