The Vietnamese Ministry of Finance has decided to slash import taxes for 18 goods categories from August 8 as a temporary move to curb growing price hikes, said local media.
Of the categories, fresh and frozen pork enjoy a levy reduction from 30 per cent to 12 per cent , fresh and frozen buffalo meat and beef from 20 per cent to 12 per cent, milk and uncondensed cream from 20 per cent to 10 per cent, eggs from 20-40 per cent to 12 per cent-20 per cent, vegetable oil from 20-50 per cent to 15-20 per cent, and finished products for children from 10-40 per cent to 7-30 per cent.
Regarding foodstuff for cattle, import tax imposed on maize will be slashed from 5 per cent to 2 per cent and cattle-feed from 5-10 per cent to 2-5 per cent.
In term of construction materials, importers will benefit from a tariff cut from 5 per cent to 2 per cent for steel ingot, and from 10-20 per cent to 5-10 per cent for steel.
Meanwhile, cosmetics import tax will be reduced from 40 per cent to 30 per cent and electronics from 40 per cent to 20 per cent.
Nguyen Tien Thoa, director of the Price Managing Department under the Ministry of Finance said that the levy cut is aimed to increase goods supply so as to balance supply and demand.
However, selling prices of milk products cannot immediately decrease in Vietnam after the Ministry of Finance decided to cut the import tax on dairy products by half, commencing this week, according to local dairy producers.
Electronics market will see no changes this month but until October when low-tax goods packages are shipped to Vietnam, said Nguyen Minh Thu, head of Marketing Office of the Thien Hoa Electronics and Home Appliance Center.
Vietnam Prime Minister Nguyen Tan Dung has just issued directive ordering relevant ministries, ministerial agencies, provincial authorities and businesses to take urgent measures to stabilize prices of consumer goods.
The government’s move is aimed to cope with fluctuations of prices of input materials including imported petroleum products, fertilizers, steel ingots complicated and unprecedented natural disasters.
Despite efforts by the government, the consumer prices indexes soared 6.19 per cent in the first seven months of this year, up 8.39 per cent on-year. (VietnamNet, VnExpress)
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