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Viet Nam Considers Raising Meat Import Taxes

by 5m Editor
3 October 2008, at 10:04am

VIET NAM - The Ministry of Agriculture and Rural Development (MARD) has officially asked the Prime Minister to adjust the import taxes on livestock products and animal feed in order to protect the local husbandry industry.

As for fresh and frozen pork, MARD has suggested raising the import tax rate from 20% currently to 25% and 29%.

Poultry meat and eggs would bear the import tax of 40% instead of the current rate of 12%, while poultry legs and wings would be imposed 20% instead of 12%. The ministry has proposed raising the tax rate on buffalo meat and beef from 12% to 15%.

Prof Nguyen Dang Vang from the Livestock Breeding Institute also said that Vietnam has imported too much meat and poultry meat so far this year, which has put big difficulties on local farmers.

Vang said that 118,000 tonnes of meat of different kinds were imported into Vietnam in the first eight months of the year, while Vietnam’s meat exports have never approached that level. If the current import growth rate is maintained, Vietnam will import 200,000 tonnes of meat this year.

Also according to Vang, one of the reasons behind the high volume of imports is the decreased import tax.

The government of Vietnam has cut taxes on this group of goods sooner than the deadlines stipulated in the country’s WTO commitments.

Under its WTO commitments, Vietnam does not have to cut the tariff on beef to 14% until 2012, while it has slashed the tax rate to 12% already. Vietnam only has to cut the tariff on fresh and frozen pork to 25%, but it has slashed the tax rate to 20% already.

Prof Dr Le Hong Man, Deputy Chairman of the Vietnam Poultry Livestock Association, applauded the MARD’s tax increase plan, saying that the tax rate increases, if approved, would help rescue local production.

MARD has also proposed slashing tax rates on feed imports.

Further Reading

- Go to our previous news item on this story by clicking here.

5m Editor