Cement Makers Propose Import Tax Cuts to Stabilize Prices
Vietnamese cement makers have proposed the government slash import taxes on clinker and cement to 0 percent from 5 percent and 10 percent, respectively, in a bid to remain cement prices until the end of June under the instruction of the prime minister.
The taxes are expected to take effect for 2008 only.
The cement industry will import an estimate of 4.5 million tons of clinker this year to meet the country’s cement demand. Clinker is mainly imported from countries outside ASEAN such as China and South Korea and from other ASEAN nations like Thailand and Indonesia.
Import taxes on clinker from ASEAN and non-ASEAN countries are now 5 percent and 10 percent, respectively, and the import tax on cement from non-ASEAN markets are standing at 40 percent.
Thus, volume of clinker bought from non-ASEAN markets is limited due to the tax difference, according to Vietnam Cement Association.
Meanwhile, the import from ASEAN countries is currently difficult as the prices are increasing. The FOB price of clinker imported form Thailand and the Philippines has risen 72 percent in the first four months of 2008 to US$38/ton this month.
At present, import price of clinker to Vietnamese ports have increased by VND1 millon-VND1.1 million/ton, higher than the domestic cement prices. (Vneconomy)
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