The Ministry of Finance (MoF) recently issued a circular to guide the implementation of the country’s new tax reduction policies under the Common Effective Preferential Tariff (CEPT) Agreement.
The circular stipulates that to qualify for the revised import tax rates of between zero and five percent, products must be on the ministry’s tax list, imported from other ASEAN countries, shipped with ASEAN certificates of origin and exported directly from ASEAN bloc countries to Vietnam. Tax reductions on individual categories are to be adjusted every year, according to the document.
The ministry said Vietnam would slash tariffs on about 10,000 products imported from ASEAN nations by 2013 in accordance with the CEPT Agreement. Most of the adjusted rates will come into effect this year, it said.
Taxes on rice and foodstuffs - which are presently as high as 50 percent - will be slashed to five percent.
Import tax rates on vehicles imported unassembled or as finished products are subject to 20 percent tariffs this year and next, 10 percent in 2008 and 5 percent in 2009.
The CEPT Agreement, part of the plan to build an ASEAN Free Trade Area (AFTA), came into effect in January 1992 and was aimed at removing trade barriers among member nations and creating a common market for the 500 million consumers in the region.
Communist Party of Vietnam - (21/04/2006)