Vietnam makes good on Indian import tax cut

Vietnam will reduce tax rates and abolish tariffs applied to 7,640 categories out of 9,222 of the current import tariffs as promised in the ASEAN-India Free Trade Area (AIFTA) agreement.

Under the Finance Ministry’s recent circular issuing Vietnam’s preferential import tariffs to implement AIFTA for the 2010-2012 period, 2,200 tariff lines out of 7,640 will enjoy lower AIFTA import tariffs than the current rates applied to most-favoured nations (MFN).

Groups of commodities that will enjoy the tax break include plastic, paper and cardboard, cotton, fibre, clothes, toys, means of transport, products made of stone and gypsum, products made of steel or iron and machines and equipment.

Certain items will be subject to the MFN tax rate where it is lower than that under the AIFTA, according to Circular No.58/2010/TT-BTC, which will come into effect as of June 1.

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