Vietnam: Steel Ingot Export Duty Likely to Reach 40 per cent
The Ministry of Industry and Trade is planning to propose a 40 per cent tax for steel ingot exports while the Vietnam Steel Corp. (VNSteel) is suggesting a duty of 30 per cent in a bid to prevent ingot re-exports, the VietNamNet reported.
Experts said &ldquoexporters are still gaining big profits with the current 10 per cent tax rate because they imported steel ingot with cheap prices earlier.&rdquo
At present, steel prices are staying at around VND17 million/ton at the domestic market while enterprises are re-exporting ingot with prices of US$1,100-US$1,150/ton. Thus, ingot export prices are still higher than domestic steel prices.
Currently, China is offering steel ingot at US$1,200-US$1,300/ton. Meanwhile, Vietnamese steelmakers are maintaining steel at prices of between VND15.2 million-VND17.5 million/ton (excluding VAT) on the domestic market in an effort to curb inflation.
Moreover, steel sales are now flat at the domestic market. The situation has pushed many steel enterprises into difficulties so they have to re-export steel ingot to deal with financial problems. (VietNamNet)
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