Speaking to the press, Mr. Nguyen Quoc Hung - Director of the Department of Tax, Fee and Charge Policy Management and Supervision ( Ministry of Finance ) said that the Ministry of Finance is drafting a Decree amending Decree 26 (2023) on export tax schedules, preferential import tax schedules... Accordingly, the Ministry of Finance proposes to reduce MFN import tax (the tax rate applied to countries in the WTO) for groups of goods.
Specifically, cars under 3 HS codes 8703.23.63, 8703.23.57, 8703.24.51 from 64% and 45% reduced 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 under 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%; Add Ethane item to Chapter 98 with 0% tax rate.
Mr. Hung explained that the reason for proposing the above tax reduction is because the Ministry of Finance has reviewed all tax rates on 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.
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 tax schedule according to the list of taxable items...
Mr. Hung added that the US is Vietnam's largest export market (accounting for 30% of total merchandise exports) and Vietnam is the US's 8th largest trading partner. In 2024, the total two-way trade turnover between Vietnam and the US will reach more than 132 billion USD. Of which, Vietnam's exports to the US will reach nearly 119 billion USD, an increase of 23.3% over the same period in 2023; imports from the US will reach 15 billion USD, an increase of 7.3% over the same period in 2023. The US trade deficit will reach about 104 billion USD (7 times the value of Vietnam's imports from the US).
According to the Ministry of Finance, the trade deficit with Vietnam has also been a matter of concern for the US for many years, especially since 2019 when the US requested that both sides jointly develop and implement a Vietnam-US action plan towards a harmonious and sustainable trade balance.
Regarding tax rates on US goods, the Ministry of Finance said that the US is a partner applying MFN tax rates and is also a partner with a large trade surplus with Vietnam. Through reviewing and comparing the overall tax rates, the Ministry found that most Vietnamese goods are applying higher rates than those applied by the US.
Mr. Hung affirmed that the drafting 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.
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 cannot be produced or have been produced but cannot meet demand.
The Ministry of Finance focuses on adjusting import taxes on goods with high import turnover of countries of interest. The basic adjusted tax rates are not lower than the tax rates of the Free Trade Agreements of which Vietnam is a member.
Source: https://vov.vn/kinh-te/my-quan-ngai-ve-tham-hut-thuong-mai-voi-viet-nam-post1187302.vov
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