Vietnam producers propose import tax cuts to stabilise prices

Vietnam producers propose import tax cuts to stabilise prices
Published: 17 April 2008

Vietnamese cement makers have proposed the government slash import taxes on clinker and cement to 0% from 5% and 10%, 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% and 10%, respectively, and the import tax on cement from non-ASEAN markets are standing at 40%.
 
Thus, volume of clinker bought from non-ASEAN markets is limited due to the tax difference, according to Vietnam Cement Association.