VCCI recommends removing obstacles in value-added tax for agricultural products

VTV.vn - Agricultural enterprises reflect that the new tax policy is creating major barriers, affecting cash flow and competitiveness of Vietnamese goods.

After more than three months of implementation, the Law on Value Added Tax has begun to reveal many problems, causing pressure on agricultural, forestry and fishery enterprises. The Vietnam Confederation of Commerce and Industry (VCCI) has sent a document to the Prime Minister requesting him to review and urgently remove the shortcomings in tax policies that are creating unprecedented barriers, affecting the cash flow and competitiveness of Vietnamese agricultural products.

The biggest problem is the regulation imposing a 5% tax rate on agricultural, forestry and fishery products "not yet processed into other products or only through normal preliminary processing." According to businesses, this regulation does not reflect the true nature of value-added tax, which only applies to the added value of the product.

Every year, the coffee industry is estimated to have to temporarily pay nearly 10,000 billion VND in taxes, while the pepper industry has to "shoulder" about 2,240 billion VND.

Another bottleneck is the lack of uniformity. Although the law stipulates that finished animal feed is not subject to tax, many local tax authorities impose a 5% tax on input materials (such as corn, bran, fish meal at the commercial stage).

This not only causes difficulties for domestic food production enterprises but also creates unfair competition with imported goods, which are not subject to value-added tax.

Source: https://vtv.vn/vcci-kien-nghi-thao-go-vuong-mac-thue-gia-tri-gia-tang-cho-nong-san-100251024061455528.htm