Steel Enterprises Propose Import Tax Hikes

Many domestic steel enterprises, who are on the edge of bankruptcy, have proposed raising tax on steel imports so as to deal with difficulties, state media reported.

 

The enterprises proposed the government to increase import tax on some steel products and steel ingots to 25 per cent from 2 per cent, on cold-rolled steel to 9 per cent (even 20 per cent) from 7 per cent, welded steel pipe to 20 per cent from 10 per cent and on hot rolled steel with thickness of 3-13 mm to 10 per cent from 0 per cent.

 

The proposal is to protect the domestic steel industry because there is now a large volume of steel in stock.

 

According to the Vietnam Steel Corporation, Vietnam is still a steel ingot importing country as domestic output meets merely 20 per cent. Therefore, the tax hike solution should be only adopted in a short time and must be calculated based on long-term interests of steel ingot and rolled steel makers.

 

Steel enterprises said earlier that they were having an inventory of some 3 million tons of steel, including 700,000 tons of steel ingots and 500,000 tons of scrap steel, valued at US$2.1 billion in total. (Vietnam Economic Times)