5:06:43 PM | 8/10/2008
Vietnam’s Ministry of Finance (MoF) October 6 decided to cut tax on steel exports by a half to 5 per cent with an aim to extricate financial problems for steel enterprises, especially steel ingot makers in the country, state media reported.
The new duty, which applies to non-alloy steel exports, is officially effective from today [October 7].
The tax cut is followed by a proposal of the Vietnam Steel Association (VSA) since late September. The VSA has suggested a tax of 2 per cent on steel exports for many times but the tax rate has not yet been agreed.
This is the fourth time the MoF adjusts the export tax on steel since the beginning of 2008. The ministry raised the tax from 2 per cent to 10 per cent in June and to 20 per cent in early August. The duty was reduced to 10 per cent September 22 and to 5 per cent now.
Pham Chi Cuong, chairman of the Vietnam Steel Association said earlier even the tax is cut to 0 per cent, steel enterprises will still incur losses.
Cuong also admitted that inexact steel demand-supply forecast has pushed enterprises into gloomy situation like this. (VNA, VietNamNet, Vneconomy)
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