Vietnam Lowers Import Tariffs on 26 Commodity Groups

Vietnam has reduced import taxes on 26 groups of goods consisting 1,812 categories in a move to finalize WTO commitments and free trade agreements, Vietnam News Agency reported Tuesday.

 

Vietnam readjusted import taxes on automobiles to 80 per cent from 90 per cent, particularly finished cars from China.

 

To curb domino effects of goods prices hikes on the world market, the domestic tax sector has taken readjustments of import levies on materials, fossil fuels such as petroleum products and steels.

 

Domestic economists expressed their worries about lower contribution by the import taxes collection to the State budget after Vietnam starting realizing its WTO commitments from April 1 of this year.

 

In the first half of this year, the customs sector of Vietnam was estimated to have collected VND35.86 trillion (US$2.24 billion), representing 51.3 per cent of this year’s estimates, up 30.85 per cent on year, the general customs department said.

 

Of the total figure, import-export tariffs and special consumption taxes collection reached VND14.66 trillion (US$916.25 million) and VND21.16 trillion (US$1.322 billion) of value added taxes.

 

Vietnam’s national assembly passed the 2007 state budget estimation with budget revenues targeted at VND281.9 trillion (US$17.6 billion), spending at VND354.9 trillion (US$22.2 billion), and state budget deficit at VND56.9 trillion (US$3.6 billion), GSO statistics showed.

 

Vietnam’s total state budget revenues in 2006 were estimated to surpass by 10.2 per cent the yearly estimation, GSO said. (VNA)