Expected to sharply reduce preferential import tax on many items in March 2025

ANTD.VN - Mr. Nguyen Quoc Hung, Director of the Department of Tax, Fee and Charge Policy Management and Supervision, Ministry of Finance , shared about the amendment of Decree No. 26/2023/ND-CP, reducing preferential import tax rates for many important items.

Previously, in order to respond to the complicated and unpredictable developments of the world's geopolitical and economic situation, especially the changes in economic, trade and tariff policies, which have had a rapid, strong, profound and multi-dimensional impact on the global economy, investment and trade, including Vietnam, in Directive 06/CT-TTg of the Prime Minister dated March 10, 2025, the Prime Minister requested the Ministry of Finance to urgently submit to the Government the amendment of Decree 26/2023/ND-CP dated May 31, 2023 to adjust tax rates for a number of groups of goods to ensure harmony and rationality according to simplified procedures, to be completed in March 2025.

Mr. Nguyen Quoc Hung, Director of the Department of Tax, Fee and Charge Policy Management and Supervision, Ministry of Finance

Implementing the above direction, the Ministry of Finance has reviewed all tax rates (MFN preferential import tax (tax rate applied to countries in the WTO), special preferential import tax (tax rate applied to countries with Free Trade Agreements (FTA) with Vietnam), special consumption tax, environmental protection tax, value added tax) for goods that countries are interested in as well as the tax rates that these countries are applying to imported goods to build and orient Vietnam's tax policy to improve the trade balance.

At the same time, the Ministry of Finance also compared the overall tax rates with countries that are Comprehensive Strategic Partners of Vietnam to develop a draft Decree amending and supplementing preferential import tax rates of a number of items in the Preferential Import Tariff according to the List of taxable items issued together with Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government on Export Tariff, Preferential Import Tariff, List of goods and absolute tax rates, mixed tax, import tax outside the tariff quota.

According to Mr. Nguyen Quoc Hung, the development of the Decree aims to: contribute to improving the trade balance with trade partners; encourage businesses to diversify imported goods, create purchasing power for consumers; ensure simplicity, ease of understanding, ease of implementation, and create convenience for taxpayers.

At the same time, the principles for drafting the Decree are also clearly stated: ensuring the implementation of the principles for promulgating tax rates stipulated in the Law on Export Tax and Import Tax; adjusting import tax on domestically produced goods that have not been produced or have been produced but have not yet met demand; focusing on adjusting import tax on goods with high import turnover of countries of interest; the basic adjusted tax rate is not lower than the tax rates of the Free Trade Agreements to which Vietnam is a member; ensuring that no new tax rates arise in the Tariff; ensuring uniform tax rates for goods of the same nature and type to limit trade fraud, causing difficulties in classifying and calculating tax on goods.

Regarding the expected adjustment of tax rates for groups of goods, Mr. Hung said that the draft Decree proposed to reduce MFN import tax on groups of goods: Automobiles under 03 HS codes 8703.23.63, 8703.23.57, 8703.24.51 from 64% and 45% to the same tax rate of 32%; Ethanol from 10% to 5%; Frozen chicken thighs from 20% to 15%;

Pistachios from 15% to 5%; Almonds from 10% to 5%; Fresh apples from 8% to 5%; Sweet cherries from 10% to 5%; Raisins from 12% to 5%;

Wood and wood products in Group 44.21, Group 94.01 and 94.03 from tax rates of 20% and 25% to the same tax rate of 5%; Liquefied natural gas (LNG) from 5% to 2%; Ethane: add Ethane to Chapter 98 with a tax rate of 0%.

The Decree shall come into force from the date of signing and promulgation.

Source: https://www.anninhthudo.vn/du-kien-giam-manh-thue-nhap-khau-uu-dai-nhieu-mat-hang-trong-thang-32025-post607090.antd