Ministry Proposes 5 per cent Tax on Steel Ingot Exports
The Ministry of Industry and Trade (MoIT) has proposed cutting the tax on steel ingot exports to 5 per cent from the current 20 per cent in a bid to help steel enterprises deal with financial problem.
In a document sent to the Finance Ministry, the MoIT said more than 400,000 tons of steel ingots and 350,000 tons of finished steel are now in stock nationwide while the tax on ingot exports is standing at high level of 20 per cent, making enterprises unable to export.
The MoIT added based on the demand for and output of steel, steel and ingot shortages will not occur from now to the end of 2008. Thus, slashing the ingot export tax to 5 per cent is necessary, the ministry said.
The Vietnam Steel Association (VSA) said that steel ingot exporters will still incur losses if the tax is reduced to 5 per cent because scrap steel, the key material for making steel ingots, was imported with high prices.
The VSA added boosting steel ingot exports, however, will help enterprises in capital turnover for production. (News)
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