Cassava export tax increase, all the distorted face

Circular 63/2015 / TT-BTC of the Ministry of Finance issued new, business enterprises export of cassava (tapioca) immediately "lightheaded" because of the tax rate from 0% to 5%

This burden does not only fall on businesses specializing in export of cassava but also to farmers directly shrugging SX. The increase in cassava export duty by the Ministry of Finance planned from the beginning of May 3/2015 on the recommendations of the Biofuels Association of Vietnam. The objective is to support and ensure the SX material for ethanol, the main raw material for making biodiesel (E5, E10). The increase of 5% export duty cassava products is based on the following parameters: Currently in Vietnam, total wheat acreage, primarily raw materials for ethanol SX 450,000 hectares, the annual output is 9.5 million tonnes of fresh tubers, process approximately 3 million tons of dry noodles. The total number of export commodities in the first 4 months of 2015 reached 2.1 million tons, 626 million revenue. Compared with the same period last year, exports to more than 60% of their soaring volume and increased 45.5% in value. Wheat procurement price items slices about 4.3 million / ton; The average export price in 2013 and 2014 2 was approximately $ 227.5 / ton, equivalent 4.867.570d / ton. According to calculations by the Ministry of Finance, the tax increase of 5%, companies purchase and export cassava to be profitable around 324.192d / ton. Therefore, the adjusted tax rate for export cassava is completely reasonable. However, according to Mr. Le Viet Chin, owner Phu Loi Private Enterprise (Pleiku City, Gia Lai), the Finance Ministry's argument is unrealistic, do not understand the operation of enterprises. Calculation of profits earned from the export of the cassava is not reasonable, because the calculation does not include product shrinkage portion (5-7%) and other expenses that they have to spend. Specifically, warehouse rental, pay the bank interest rate, money to buy disinfectant, quarantine, handling, shipping ... about 557.000d / ton. Thus, for many years, many companies specializing in export goods collected only enough bread slices for expenditure and even many companies also lost by too high input costs. "The input costs for cassava products are mandatory terms, can not be reduced, so as to apply this tax increase export of up to 5%, meaning that increases in input costs, in whereas product prices do not increase, certainly business activities cassava products will face difficulties, "Mr Chin said. Ms. Nguyen Thi Xuan Ngoc, Director Thanh Tam Trading Co. Ltd (Quy Nhon, Binh Dinh), said cassava export tariffs increased by 5%, equivalent to the 250D / kg, plus over 500,000 input costs / ton. With input costs so sure business specializing in the export of cassava companies will incur losses. "I'm scared stiff with 50,000 tons of products are in stock. Now you want to sell off but can not, because the partners had bought enough products. If the time of Circular 63 took effect, increased cassava export duty of 5% without consuming all products in stock, we will lose 12 billion, "Ngoc confided. Mr. Nguyen Van Tuyen, Head of Import Export Management (doit Binh Dinh), said the province has around 11 companies specialized in purchasing and exporting cassava with an annual output of around 800 thousand tons. Particularly for the SX 2014-2015, companies have purchased about 1 million tons. "Prior to Circular 63, DN we have exported 10,000 tonnes line with the agreed price is 228 USD / ton. But when customers get the information about Circular 63, known as the DN Vietnam're selling goods should immediately press prices down to 222 USD / ton. With this price, big hole, "said Nguyen Thi Xuan Ngoc, Director of Trade Co. Ltd Thanh Tam said. In the first 5 months of 2015, the companies have exported 815 700 tonnes, is currently about 163 300 tonnes in stock. The tax increase export of cassava will undoubtedly cause difficulties for businesses, because the partners were closing price; Production activities of farmers they will also be affected, by the enterprises will have to purchase the product discounts to reduce the cost of inputs. "We have captured the aspirations of all of the companies purchasing and exporting cassava in the province. On that basis, Binh Dinh Department of Trade and writing PPC recommended the Ministry of Finance is considering applying the tax rate back time 5% for cassava products, in order to create favorable conditions for enterprises solve difficult, especially for cargo volumes in stock, "Mr. Jobs said. According to Mr. Jobs, before the "cornered" by Circular 63, enterprises specializing in export of cassava in Binh Dinh has sold off inventories to evade tax rate of 5% (circular takes effect from 20/6 ). The overload due to heavy sell-off caused at Quy Nhon port still left about 2,000 tonnes of cassava. "Wheat is the poverty alleviation tree farmers. On poor soils leg wheat crop will not be planted no crops else. When applied tariffs of 5% for cassava export items, the company would be disadvantaged forest. Business people never to suffer losses, but to no losses will lead them to reduce the purchase price. Once the purchase is discounted farmers suffer. Thus, not all of sugarcane farmers suffering continued embrace suffering as cassava, "Mr Jobs said. That was so clear, the amendment tariffs export of cassava, the object "beaten" the farmer is still not the enterprises