13:16 | 07/08/2015 Finance - Banking
(VEN) - The Ministry of Finance (MoF) is finalizing a draft amendment to the Law on Export and Import Duties to submit to the government for approval given Vietnam’s increasing international economic integration.
Importing goods through the Lao Cai International Border Gate
According to the MoF, over the past decade, the law has contributed significantly to the development of foreign trade, production and export and import activities, boosting economic restructuring, while protecting domestic production and manufacture in accordance with international practice.
Moreover, the law has also contributed to stabilizing state budget revenue sources. In the first years of implementation, export and import tax revenues accounted for 15-16 percent of the state budget revenue. However, in recent years, these percentages have reduced due to Vietnam’s removal of tariff barriers according to its international commitments. With for example, export and import tax revenues in 2013 only accounted for 8.22 percent of total state budget revenue.
The context of increasing international economic integration requires the Law on Export and Import Duties to be amended in harmony with international practice. Therefore, this law will be annulled in 2018 according to Vietnam’s bilateral and multilateral free trade agreements.
To protect domestic production, the MoF suggested current protectionist measures on taxation included in the Ordinance on Safeguards in Import of Foreign Goods into Vietnam, Ordinance on Anti-subsidy of Imports into Vietnam and Ordinance on Anti-dumping of Imports into Vietnam should be legalized in the Law on Export and Import Duties.
The Law on Export and Import Duties has now seemed inappropriate for current domestic economic development in a context of increased international integration. For example, several tax exemption regulations on goods imported under international treaties have failed to meet Vietnam’s international commitments.
In addition, this law should be amended to suit Vietnam’s current legal system which have been revised and amended at the sectoral level, while meeting practical requirements for production development and foreign trade expansion in a new phase of economic development. It should also change regulations on domestic production protection to be commensurate with international economic integration and the Export and Import Tax Policy Renovation Strategy until 2020.
The Export and Import Tax Policy Renovation Strategy until 2020 aims to amend export tariffs by encouraging the production and export of high value added items and limiting export of minerals and low value added items, protect a number of domestically produced goods items, simplify export and import tariffs and commodity codes, renovate tax calculation methods and adjust export and import tax rates according to international practice.