Finance Ministry Proposes Halving Tax on Coal Exports to 10 per cent
The Vietnamese Ministry of Finance has proposed cutting tax on coal exports to 10 per cent from the current 20 per cent in a bid to deal with stockpiled coal volume due to demand fall, according to head of the Tariff Policy Department Phan Van Truong.
The ministry is drafting a document on cutting coal export tax and not allowing coal exporters to have the added value tax (VAT) return after legal violations on this kind of tax happened at many coal exporting companies in the middle of 2008, Truong said.
Not allowing VAT return will increase an additional VND1,000 billion to the state budget, he added.
Meanwhile, Head of the export-import board under the Vietnam Coal and Mineral Industries Group (Vinacomin) Dinh Quang Trung said Vinacomin’s export turnover will fall to US$800 million-US$900 million this year, compared with US$1.4 billion last year.
At present, there are about 7 million-8 million tons of low-quality coal in stock in northern Quang Ninh province. Recently, the government has given permission to Vinacomin to export the coal via Van Gia port in the province. (vietstock)
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