Vietnam Cuts Import Tax on Electric, Electronic Components
The Ministry of Finance (MoF) has decided to reduce import tax rates for about 30 types of mechanical, electric and electronic components and spare parts in order to lessen difficulties for businesses, after incentives for locally-made content were removed, Vietnam News Agency reports.
The ministry said nearly 30 groups will enjoy tax rates of 0-10 per cent instead of the existing 5-10 per cent. They include plastic pipes, vacuum pumps, air compressors, and diesel engines components and spare parts.
Other items such as electric fans and ceiling fans under 125W, vacuum cleaners, floor polishers, and juicers will be levied 40 per cent instead of 50 per cent at present.
The MoF said since Vietnam has abrogated incentives for locally-made content in accordance with its World Trade Organization commitments, tax rates of between 20-50 per cent were applicable to these groups, so the import tax adjustment was aimed to reduce businesses' cost burdens. (VNA)
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