Agree pause cassava export duties

(HQ Online) - The Government Office has written notification directed by Deputy Prime Minister Vu Van Ninh, on behalf of the Prime Minister, agreed in principle with the recommendations of the Finance Ministry on tax applies pause 5% export cassava.

cassava
Cassava chips export tax of 5% not bear anymore. Photo: Internet.
Together, the Deputy Prime Minister asked the Ministry of Finance pursuant to Article 11 of Decree 87/2010 / ND-CP of the Government detailing the implementation of some articles of the Law on Export and Import Tax and direction of Prime Minister in Notice No. 19 / TB-Government Office of the Government Office, to handle export tax specifically for cassava under the authority, to ensure conformity with reality and to encourage the production, Cassava consumption.

Earlier, as Customs newspaper reported, following the instruction of the Prime Minister and based on the recommendations of the Biofuels Association, the Ministry of Finance adjusted export tax increase from 0% to cassava 5% from 20-6-2015.

Some time after the new tax takes effect, the Ministry of Finance continued to receive feedback from collective enterprises export cassava, some personal content is 5% higher tax rate affects market consumption of raw materials and cassava farmers. Besides, the time to raise taxes too fast leads to large inventories.

According to the newspaper Customs seize, immediately after receiving this reflects, on 23-6-2015, the Ministry of Finance met with the Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Association of Cassava, Association Biofuels Association and 14 exporters cassava desktop user uninstalls.

At the same time, the Tax Policy Department - Ministry of Finance has organized a survey in Binh Dinh and Gia Lai - two areas with large inventories to understand reality. Since then, the Ministry of Finance has officially submitted to the Prime Minister plans for dealing with to ensure harmony between the interests of the State - now - farmers, especially the interests of farmers.

Immediate measures, the Ministry of Finance report to the Prime Minister allows pausing implementation of Circular No. 63 to remove difficulties even for businesses and people grow cassava for this year's crop.

According to the Ministry of Finance, based on the average export price of 2015 is 225 USD / ton equivalent 4905 VND / kg, the price steady is 4889 dong / kg, the average profit margin recorded only 16 copper / kg (ie, 16,000 VND / ton). With this profit, if subject to a 5% export tax, businesses will lose 229,500 VND / ton.

This, the Ministry of Finance has taken into account when making a decision to raise taxes, however, prices at the time, now has interest to 324,192 VND / ton if 5% taxable.

Looking back at the data can see, the purchase price of cassava compared to only 4,300 VND / kg (less than 589 co-existing) export price was lower than the present only insignificant, mainly due to the impact of exchange rates. That has meant a number of business interests strongly affected as a result, lead to losses if the export tax community.

In another aspect, the present, the total output of fresh cassava production in Vietnam over 12 million tonnes (5.2 million tonnes of cassava) and some 1.2 million tonnes of dried cassava chips imported from Cambodia, Laos .

Each year, the domestic demand of about 7 million tonnes used for the production of fresh cassava starch; 0.7 million tonnes of dried cassava as feedstock to produce animal feed and aquaculture; 0.15 million tonnes of dried cassava for ethanol production and export about 2 million tonnes of dried cassava.

Currently, Vietnam has about 50 companies exporting cassava. As of 15-6-2015, total production of cassava export was 1.5 million tons. Thus, with an average annual output of about 2 million tonnes of exports, the country now has a stock of 500,000 tons of cassava. In addition, the rainy season is coming, loss ratio will increase due to a moldy, reducing quality.

The Ministry of Finance stated that inventory if exports lose and exporters will reduce purchasing price and volume for this output is grown by farmers.

Thus, on the whole, proposed by the Ministry of Finance to stop implementation of the Circular No. 63 would solve difficult even for businesses exporting cassava chips and cassava growers.