MFN import tax will be deeply reduced on a series of products, including some types of cars.

MFN import tax on cars, frozen chicken thighs, fresh apples, cherries, raisins... is being proposed to be significantly reduced compared to current regulations.

According to the Ministry of Finance's proposal, the Most Favored Nation (MFN) import tax rate for some types of automobiles will be significantly reduced - Photo: NHU BINH

This is in response to global economic, trade, and tariff policies.

Some types of cars will see their MFN import tariffs reduced by up to half.

On the afternoon of March 25, the Ministry of Finance announced that it had proposed a draft decree amending Decree 26 of 2023 to adjust import tax rates for certain groups of goods.

Regarding the upcoming adjustment of tax rates for various product groups, Mr. Nguyen Quoc Hung, Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), stated that in the draft decree, the Ministry of Finance proposes reducing MFN import taxes (the tax rate applied to WTO member countries) for these product groups.

Specifically, for automobiles under HS codes 8703.23.63, 8703.23.57, and 8703.24.51, it is proposed to reduce import duties from 64% and 45% to a single rate of 32%.

Import tax rates for other items such as ethanol are expected to decrease 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%; and raisins from 12% to 5%.

Wood and wood products under headings 44.21, 94.01, and 94.03, which previously had tariff rates of 20% and 25%, will be reduced to a single rate of 5%. The tariff on liquefied natural gas (LNG) will be reduced from 5% to 2%.

To respond to changes in global economic, trade, and tariff policies.

The Ministry of Finance explained that the above proposal was made to respond to the complex and unpredictable developments in the global geopolitical and economic situation, especially changes in economic, trade, and tariff policies affecting the global economy, investment, and trade, including Vietnam. The Prime Minister instructed the Ministry of Finance to urgently submit to the Government a draft amendment to Decree 26 of 2023 to adjust the tax rates of certain groups of goods to ensure harmony and rationality.

Adjusting the MFN import tariff rates for the aforementioned items is necessary to ensure fair treatment among Vietnam's comprehensive strategic partners.

Regarding the purpose of drafting the new decree, according to Mr. Nguyen Quoc Hung, it aims to contribute to improving the trade balance with trading partners. At the same time, it encourages businesses to diversify imported goods, creating purchasing power for consumers; ensuring simplicity, ease of understanding, ease of implementation, and convenience for taxpayers.

On the other hand, the principle behind drafting the decree is to ensure that import taxes are adjusted for goods that are not produced domestically or that are produced but do not meet sufficient demand.

Focus on adjusting import tariffs on high-value import items that are of interest to other countries; the adjusted tariff rates should not be lower than the tariff rates of free trade agreements to which Vietnam is a member;…

The decree was drafted using a simplified procedure and will take effect from the date of signing and promulgation this March.

Regarding trade relations with other countries, the Ministry of Finance stated that on September 11, 2023, Vietnam and the United States established a Comprehensive Strategic Partnership for peace, cooperation, and sustainable development.

This is a significant milestone in Vietnam's political and economic diplomacy, contributing to enhancing Vietnam's geopolitical position in the world. In the Joint Statement on Economic, Trade and Investment, the two countries agreed to create favorable conditions and further open their markets for each other's goods and services.

Although Vietnam and the United States established a bilateral trade agreement in 2001, they do not yet have a free trade agreement on tariff reductions. Therefore, the United States remains a partner subject to the Most Favored Nation (MFN) import tariff rates applied generally to WTO member countries.

In addition, Vietnam has established comprehensive strategic partnerships with 11 other countries: China, the Russian Federation, India, South Korea, Japan, Australia, France, Malaysia, New Zealand, Indonesia, and Singapore.

Of these 12 countries, 11 are already members of bilateral and multilateral trade agreements, and Vietnam is a member and enjoys preferential tariffs under these agreements.

To proactively adapt flexibly, promptly, appropriately, and effectively to the global and regional situation in order to achieve growth targets, maintain macroeconomic stability, control inflation, and ensure the major balances of the economy in 2025 and beyond, it is necessary to adjust the MFN import tariff rates for certain goods to ensure fair treatment among Vietnam's comprehensive strategic partners.

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Source: https://tuoitre.vn/se-giam-sau-thue-nhap-khau-mfn-loat-mat-hang-trong-do-co-mot-so-loai-o-to-20250325194331362.htm