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Friday, July 19, 2024

Finance Ministry weighs tariff adjustment options for animal feed material

By Truc Dao

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HCMC – The Finance Ministry is considering two potential options for adjusting tariffs on materials used in animal feed production.

These considerations come as part of the ministry’s efforts to gather feedback on a draft decree that aims to revise various aspects of export tariffs, preferential import tariffs, tariff nomenclature, fixed duties, mixed duties, and out-of-quota import duties.

The Ministry of Finance has conducted a thorough review of tax rates for two distinct categories of goods. For the first category, the ministry is contemplating a reduction in taxes, aimed at supporting local businesses, streamlining trade processes, simplifying administrative procedures, and curbing potential fraudulent practices in goods classification.

Meanwhile, the tax rates for the second category of goods will remain unaltered, as they are deemed appropriate for the current economic circumstances.

Previously, several ministries and associations had proposed a reduction of the most favored nation (MFN) tariffs on soybean meal, a crucial component in animal feed production, from 2% to 0%. However, the Ministry of Finance is currently deliberating whether to maintain the existing tax rates for soybean meal or implement a more modest reduction by just one percentage point, lowering the MFN tariffs from 2% to 1%, as opposed to reducing them to zero, as originally suggested.

The ministry underscores the importance of revising tax rates outlined in the schedules of export tariffs, preferential import tariffs, tariff nomenclature, fixed duties, mixed duties, and out-of-quota import duties. This revision is expected to have positive impacts, including the mitigation of inflation, the alleviation of challenges faced by local businesses, the stimulation of investment, the promotion of technological advancements, cost reduction, and an enhancement of overall competitiveness in the market.

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