Cassava tax increase to 5%

The Ministry of Finance has issued Circular No. 63/2015 / TT-BTC revised export duty rates for goods under heading 07.14 in cassava export tariff issued Circular No. 164/2013 / TT BTC of the Minister of Finance.

Accordingly, the Ministry of Finance adjusted export tax on commodities cassava (0714.10.11 and 0714.10.19 code) from 0% to 5%. This rate will be effective from the date of 20-6-2015.

The export tax increase cassava was the Ministry of Finance since the beginning of the month 3-2015 considerations based on the recommendations of the Biofuels Association of Vietnam in order to support and ensure the raw material for the production of ethanol - Natural Basis for biodiesel blending (E5, E10).

Statistics from the Association of Biofuels Vietnam showed that the total area cultivated mostly san- materials to ethanol of about 450 thousand hectares Vietnam, the annual output of 9.5 million tonnes collected fresh tubers, which processed about 3 million tonnes of dried cassava for use as animal feed, exports to China and raw materials for ethanol production.

Import turnover of cassava in 2014 was 1,042 million tons, while exports of this item in 2014 almost 2 million tonnes.

Some businesses purchase and export of cassava said purchase price is about 4,300 VND / kg (including the cost of loading and unloading, disinfection, ports, excluding interest expense, loss) equal to 4.300. 000 / ton. Meanwhile, according to data from the General Administration of Customs, the export price average cassava 2013 and 2014 over 4,867,570 VND / ton.

With those numbers, Biofuels Association of Vietnam said that the ethanol industry is faced with many difficulties, including challenges from high raw material prices. It can be said, at present, 100% ethanol plants, including fuel ethanol and food-grade alcohol must purchase raw materials at high prices, mainly due to demand for cassava in China too large, while output Vietnam cassava term only.

According to calculations by the Ministry of Finance, after adjusted tax rate cassava exports from 0% to 5%, export enterprises still profitable than the purchase price of cassava in the country 324 192 / ton; contribute to ensuring the demand for raw materials of cassava for ethanol production.

The adjustment of export tax rates cassava (group 0714) to 5% fully consistent with regulations on export tax brackets of the National Assembly Standing Committee.