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Zero tax rate on steel export
On Oct 28, Ministry of Finance announced the export tax rate on steel to be reduced from current 5% to 0%, effective from Nov. 7.
The Vietnam export tax imposed on steel was raised to 20% in mid May, 2008 to discourage traders from export. The tax then was reduced 10% on Sept 23, then further down to 5% on Oct 7 before it would be zeroed on Nov 7.
Vietnamese steel traders and producers are reportedly having about one million tons of steel stockpiled. At the current price, this amount is equivalent to over $1 billion of working capital, causing great financial difficulty for firms.
The General Secretary of the Vietnam Steel Association (VSA), Dinh Huy Tam, revealed that the steel consumption level, at the moment, has been reduced by two-third. Monthly sales are 110 thousand tons compare to 330 of the same period last year.
Early this month, VSA requested the import tax on steel to be increased from current 7% to 25% in order to protect domestic producers. While the request has not been accepted by the Government, it already received angry responses from the public.
VNN
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