12:56:40 PM | 25/7/2008
Bui Xuan Khu Minister of Industry and Trade is quoted by the Tuoi Tre (Youth) newspaper as saying the government of Vietnam will likely increase import tax imposed on automobiles, auto spare parts and gold in the coming months in order to reduce trade deficit.
Banks will be also asked to stop loaning for businesses to import those items, Khu noted at a conference in Hanoi Jul 22.
Khu did not disclose detailed tax hikes.
Benedict Bingham, a representative from the International Monetary Fund, said trade deficit value accounted for up to 40 per cent of Vietnam&rsquos exports value, a really warning level, the newspaper said.
In the first six months this year, Vietnam imported 90 tons of gold valued at US$2.8 billion, doubling US$1.4 billion last year.
Currently, Vietnam is imposing 1 per cent tax on gold and 83 per cent tax on automobile and 15 per cent duty on car parts and components, state media said.
Vietnam imports are fore to rise 31 per cent on year to US$80.2 billion this year and its exports to increase 26 per cent on year to US$61.2 billion.
The Asean country is predicted to import US$4.25 billion worth of cigarette materials, consumer goods, finished automobiles, and motorbike spare parts this year, an on year rise of 9.5 per cent, but down US$800 million compared with the year&rsquos estimate. (Youth)
Vietnamese
