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Friday, June 14, 2024

Ministry proposes raising duties on steel exports, reducing tariffs on imports

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HCMC – As the steel price surge has affected many public investment projects, the Ministry of Finance has suggested raising duties on steel exports and reducing taxes on steel imports.

In a draft decree amending Decree 57 on preferential import-export tariffs, the ministry stated that the sharp increase in the local steel prices was mainly due to the high prices of materials for steel production, while these materials have been mainly imported, the local media reported.

To reduce the steel prices, the Ministry of Finance has proposed the Government increase the duties on steel billet exports from 0% to 5% to help stabilize the supply of steel billets for the domestic market and the steel prices, limit steel exports and ensure the sustainable development of the steel sector.

Meanwhile, some steel products have been subject to high import taxes, at 15%-25%, for a long time. Therefore, the duties on steel imports which are now subject to a 15% tax rate should be cut to 10% and those subject to 20% or 25% tax rates to 15% to reduce the prices of materials for steel production.

The reduction of these import tariffs will see the State budget revenue drop, but it is necessary. The reduced figure will not be too high due to the low demand for steel imports.

The tariff reduction will encourage domestic enterprises to invest in technologies to reduce the prices of their products and improve their competitiveness with imported steel.

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