Cassava enterprise business calls for tax heaven

Many businesses simultaneously submit an application to the Central agency proposals on the implementation of the export tax increase for cassava products from 0% to 5%.
Cassava enterprise business drivers call heaven because thueThuong purchasing wheat from farmers H.Tay Son (Binh Dinh) - Photo: Hoang Trong
The tax increase is carried out according to Circular No. 63/2015 / TT-BTC issued by the Ministry of Finance dated 06.05.2015, effective from 20.06.2015 day. According to the Ministry of Finance, the tax increase cassava exports, mainly raw material for the production of ethanol, which is to support, guaranteed source of raw materials for the production of ethanol in water.

Unrealistic

Currently there are about 450,000 hectares of cultivated wheat (cassava), an annual production of about 9.5 million tonnes of fresh roots. Of these, 4 million tonnes of fresh roots as raw material for starch production plant, while the rest is processed into dried noodles around 2.3 to 2.5 million tonnes of raw materials for production of animal feed, production exports to China, as feedstock for ethanol production. 2014, enterprises (companies) exported over 1.9 million tons of dry noodles, worth over 158 million USD turnover.

According to the Ministry of Finance, the current purchase price of dried cassava approximately 4.3 million / ton, the average export price in 2013 and 2014 2 was $ 227.5 / ton, equivalent to 4.86 million / ton. With a tax rate of 0% today, the cassava export companies 567 570 interest / ton, if the tax increase exports from 0% to 5%, the company would be approximately 324 192 Interest / ton.

However, Mr. Le Viet Chin, director of Phu Loi Private Enterprise (TP.Pleku, Gia Lai), said that the Ministry of Finance bases mentioned above are not true to fact. By DN purchasing wheat for export have to cost a lot of accounts, such as loan and pay interest to the bank; rent warehouse for storage and preservation of a fairly long time; losses from 10% to 15% and other expenses such as sterilization, inspections, fees for export ... job losses alone have lost about 600,000 VND / ton. If cassava export tariffs of 5%, the enterprise can not only rate losses 324 192 / ton.

"We expect the Prime Minister to consider not increasing cassava export tax in 2015. Since 2016, if any increase should also increase from 0% to 1% in order to help farmers grow wheat and procurement firms Wheat is profitable to ensure minimum life wheat farmers, particularly in the Central Highlands, "Chin said.

Farmers bear all

According to Nguyen Thi Xuan Ngoc, Director Thanh Tam Trading Co., Ltd. (in Quy Nhon), with some 50,000 tons of goods are their inventory, if tariffs of 5%, the company lost 12 billion. "Next time, cassava exporters could only reduce the purchase price of wheat farmers to reduce input costs, avoid losses. Domestic wheat prices thus forced down low, only farmers who suffer, "she said Ngoc.

Tran Vinh Long, cassava export source of VN, Thailand, Indonesia ... mainly exported to China but in Thailand, Indonesia are not taxed, but also subsidies for wheat growers. If VN raise taxes to 5%, the price of wheat exports will not compete with other countries in the region, cassava exporters may have to stop working, thousands of unemployed workers. Meanwhile, demand for cassava will be reduced, domestic cassava prices down, causing damage to farmers.