Export tax will increase cassava, ethanol
Export tax will increase cassava, ethanol
Saigon Times Online) - The Ministry of Finance is expected to increase tax rates cassava exports and to encourage ethanol use in countries, contribute to ensuring the production of raw materials for biofuels in particular gasoline E5.
According to the Ministry of Finance, the tax brackets exporter of cassava products and ethanol is 0% -10%, but export tariffs currently applied to these items is currently 0%.
At the meeting on pricing mechanism for petrol E5, the Prime Minister has assigned the Ministry of Finance "Adjustment export tax and cassava ethanol to encourage raw materials used in the country, contributing to ensuring raw material for biofuel production. " So this recently proposed increasing the tax rate cassava exports from 0% to 5% and ethanol from 0% to 3%.
According to calculations by the Finance Ministry, for cassava products, the purchase price was 4.3 million / ton, the export price of about 4.867 million / ton (US $ 227.5 / t), if tax Export is 0% export enterprises will be about 567 500 interest / ton.
Cassava chips as raw material for the production of ethanol. According to the Ministry of Finance, the current ethanol industry is facing difficulties due to high raw material prices, the ethanol plants have to compete on price with the trader buy cassava for export to China.
If the adjusted tax increase cassava exports from 0% to 3%, exporters incur additional export taxes 146 027 / ton and if export prices unchanged, the enterprise still profitable export contracts 421 543 / ton. Even if tax rates increase exports of cassava chips from 0% to 5%, the rate of export enterprises can still be 324,192 VND / ton. From this calculation, to ensure demand for raw materials of cassava for ethanol production, the Ministry of Finance is expected to adjust the tax increase exports of cassava chips (heading 0714) from 0% to 5%.
Under Decision No 53/2012 / QD-TTg issued Roadmap applicable percentage of biofuel mixed with conventional fuel, the date 1-12-2014, E5 bio gasoline will be produced for use for road motor vehicles at local 7: Hanoi, Ho. Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, Quang Ngai, Ba Ria-Vung Tau and will officially widely used nationwide since 1-12-2015.
For items ethanol, the Finance Ministry expects adjusted export tax rate from 0% to 3% by this item is processed deeper than cassava products, ensuring the principle of tax provisions made Export of raw materials higher than the product are processed further.
The ministry said that the adjustment of export tax rate two items above as proposed to ensure compliance with regulations on export tax brackets of the National Assembly Standing Committee.
But the basis for further construction plans adjust export tax these two items, the Ministry of Finance for government departments and associations have further comments.
Biofuels are currently the Government E5 encourage use. Therefore, the Government Office last January and has announced the conclusion of Prime Minister Nguyen Tan Dung on pricing mechanism for petrol E5 is the Prime Minister agree that applied in 2015 appropriated measures stabilization fund gasoline prices for lower gasoline E5 for RON 92 petrol minerals to create E5 gasoline price difference is lower than the selling price of 92 RON petrol and minerals from VND300 / liter to VND500 / liter to encourage the use of E5 .
Products ethanol (etilich concentrations above 99% by volume) is produced mainly from cassava, the Finance Ministry said most of the ethanol plants of large capacity, new build are using cassava as feedstock to produce.
By the end of 2013, Vietnam had the ethanol plant with a large capacity plant is alcohol Dong Xanh (Quang Nam) 120 million liters / year; Tung Lam alcohol factory (Dong Nai), 72 million liters / year; Binh Phuoc alcohol plant (Binh Phuoc) 100 million liters / year; Dung Quat ethanol plant (Quang Ngai) 100 million liters / year; Dac alcohol plant (Kon Tum) 72 million liters / year; Dac Nong factory alcohol (Dak Nong) 45 million liters / year; Phu Tho alcohol plant 100 million liters / year (under construction).
If these plants operate at full capacity to produce ethanol, the ethanol production could reach about 500 million liters, is about 10 billion liters phase E5 or E10 about 5 billion liters of gasoline.
But according to this fact the source material is a barrier for ethanol production of these plants. This led to the factory to work perfunctorily.
Because under the Biofuels Association of Vietnam, the total area under cultivation of cassava - mostly raw materials to produce ethanol - Vietnam's 450,000 hectares and annual production 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.
The volume of imported goods in 2014 was 1,042 cassava million tons, while the volume of commodity exports 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, 3 million / ton. Meanwhile, according to data from the General Administration of Customs, the export price average cassava 2013 and 2014 over 4.86 million / ton.
