Tax on Electronics Components Proposed to Be Removed

Tax on Electronics Components Proposed to Be Removed

The Ministry of Industry has recently asked the Ministry of Finance to remove the import tariff on electronics components, which are not yet made in Vietnam, to between 0 per cent and 5 per cent, for joint ventures and retain the announced plan on reducing tax on electronic components that can be made domestically.

According to the roadmap of the ASEAN Free Trade Area (AFTA), the import tariff on electronics products imported from ASEAN countries will be subject to a tax rate of 0-5 per cent by January 1, 2006. By 2007, the import of electronics components will be subject to a tax rate of 0 per cent.

However, the electronics components imported from non-ASEAN countries will be subject to a tariff of between 15 per cent and 20 per cent.

• N.H