Proposal to amend preferential import and export tax for some items

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The Ministry of Finance has just finalized the draft Decree amending and supplementing a number of terms of the Government’s Decree No. 57/2020 related to export tariffs, preferential import tariffs, lists of goods and absolute and mixed tax rates.

Proposing to amend the preferential import and export tax for some items.

The draft Decree developed by the Ministry of Finance includes 2 articles with 4 main groups of contents. Accordingly, the preferential import and export tax rates will be revised for a number of items with strong price increases in recent years to contribute to stabilizing the macro-economy, controlling inflation and supporting and alleviating difficulties for the economy.

The draft also amends the export tax and import tax rate of MFN (imported goods originating from a country, group of countries or territories implementing the most-favored nation status) for a number of items to protect and promote promote the efficient exploitation and use of domestic non-renewable natural resources; restrict the export of raw and unprocessed resources and contribute to the simplification of the tariff schedule.

Notably, the draft Decree also amends and adjusts a number of contents of the tax incentive program for domestically manufactured and assembled cars. Accordingly, the Ministry of Finance submitted to the Government for permission to continue implementing the tax incentive program under Decree No. 57/2020 for the period after 2022 and amend and supplement a number of contents accordingly.

In the draft, the Ministry of Finance also adjusted the export tax and MFN import tax rates for a number of items to meet the management requirements, overcome the inadequacies arising in practice and create favorable conditions for production and business development such as: gold, fine quartz powder, plant seeds.

According to the Ministry of Finance, the draft Decree will not generate new administrative procedures or administrative procedures that need to be amended, supplemented or abolished. At the same time, the contents to be amended and supplemented are those that have been implemented by tax and customs authorities in the past period. When implementing the draft Decree under the amendment and supplement plan, the proposal will not incur compliance costs as well as resources for the implementing organization.

According to the Ministry of Finance, over the past time, the Covid-19 epidemic has continued to develop complicatedly, negatively affecting many aspects of socio-economic life in the world and in the country, causing stagnation and disruption of the supply chain.

In the country, many production industries and fields have to shrink or temporarily suspend their operations; production activities of many enterprises were stalled; in which, the field of transportation and passenger transportation was interrupted due to social distancing. Domestic automobile manufacturing and assembling enterprises face difficulties in product consumption, and the market size is narrowed.

Recently, the Ministry has received recommendations from a number of associations and businesses related to the adjustment of import and export tax rates of a number of items in the export tariff and preferential import tariff; at the same time, reflecting a number of issues arising from the implementation of Decree No. 57/2020.

The Ministry of Finance also received an official dispatch from the Government Office informing the direction of Deputy Prime Minister Le Van Thanh on the proposal of the Hai Duong Provincial Party Committee regarding the proposal of Ford Vietnam Company; in which, request the Ministry of Finance to assume the prime responsibility for, and coordinate with relevant agencies in, reviewing and evaluating the overall implementation of the tax incentive program for automobile manufacturing and assembling specified in Decree No. 58 2020; study and propose contents to be amended and supplemented, including considering the possibility of continuing to extend the Program for the next period (after 2020).

Therefore, the Ministry of Finance considers it necessary to amend and supplement some contents of Decree No. 57/2020 to suit the current requirements and context. The formulation of the Decree will be in accordance with the principles of promulgating tax schedules and tax rates specified in the Law on Import and Export Taxes. Thereby, contributing to stabilizing the macro-economy, controlling inflation; promptly support and remove difficulties for domestic production and business enterprises in the face of the impact of the Covid-19 epidemic.

Source: ndh.vn – Translated by fintel.vn