The Ministry of Finance has asked the Government to delay tax reductions imposed on more than ten products, slated for this year (2004), until January 1, 2006, the ministry announced
Under the Protocol of Common Effective Preferential Tariff (CEPT)�€™s temporary exclusion list, ASEAN member states, which are temporarily not ready to include certain sensitive products in the CEPT Scheme, may exclude such products on temporary basis.
Deputy Finance Minister Truong Chi Trung said motorbike engines, engine parts and, vans and pick-up trucks with a capacity under 5 tonnes are amongst the 14 products proposed for tax cut postponement.
The finance ministry first planned to include more than 40 products in the temporary exclusion list, however, it finally selected only 14 products considered extremely necessary for protection, Trung said. According to the Ministry of Industry, 14 products cannot compete against ASEAN imports.
For example, Viet Nam imports roughly 50 million USD worth of motorbike engine parts yearly, of which half is from ASEAN countries, the Ministry of Trade reported. Local industry authorities are also worried that the domestic market will be dominated by ASEAN imports if the products are included in the tax cut scheme scheduled for this year (2004).
Viet Nam will implement this year�€™s CEPT scheme on 14 products with a tax cut itinerary of 20 percent in 2004, 15 percent in 2005 and 5 percent in 2006.
VNCG-VDC1 - (19/04/2004)