The Vietnamese government has required the Ministries of Finance (MoF), and Industry and Trade (MoIT) to cut more import tariffs in order to realize the country’s commitments to the World Trade Organization (WTO), said a recent government’s directive.
The ministries will monitor the cutting of import taxes on food and consumer goods such as alcohol, beer, tobacco, coffee and fresh vegetables.
Pursuant to the WTO’s commitments, the nation this year must reduce import duties on nearly 3,800 tax categories and cut about 2,000 items by a maximum of roughly 2 per cent next year.
Joining the global trade club in January 2007, Vietnam committed to lower taxes on 10,689 imported goods, with an average cut of nearly 4 per cent. Full implementation of the scheme will face five to seven years.
Under the WTO, Vietnam must decrease import taxes on farming products from 25.2 per cent to 21 per cent. For non-farming products, taxes must drop from 16.1 per cent to 12.6 per cent.
The Southeast Asian country has so far cut and reduced more than 1,800 tax lines, mostly related to textiles and fruits and vegetables, helping to open the market since its WTO’s admission. Taxation of some products including vehicles and milk had even been reduced before the deadline, said Le Danh Vinh, Deputy Minister of MoIT.
Other import taxes to be reduced include those on gold, gemstones, glass, footwear, household products, and electronic products.
In a drive to align domestic and international market prices of strategic goods, the Government has asked the two ministries to continuously evaluate prices of goods in line with the market to encourage healthy competition and minimize monopolies. (VNS)
Vietnamese
