Export tax will increase cassava, ethanol

The Ministry of Finance is expected to increase tax rates cassava exports and to encourage ethanol use in the country, contributing to ensuring raw material for biofuel production that is specific E5.

According to the Ministry of Finance, the tax brackets of commodity exports and cassava 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 "Adjusting Export Tax and cassava ethanol to encourage raw materials used in the country, contribute to ensuring resource for biofuel production. " So this has recently proposed to increase the tax rate cassava exports from 0% to 5% and ethanol from 0% to 3%.

According to calculations by the Ministry of Finance, for cassava products, the purchase price is 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 benefited approximately 567,500 VND / ton.

Cassava chips as raw material for the production of ethanol. According to the Ministry of Finance, the ethanol industry is struggling due to high raw material prices, the ethanol plants have to compete on price with the trader to buy cassava for export to China.

If adjusted tax increase cassava exports from 0% to 3%, exporters incur additional export taxes 146 027 / ton and if export prices remain the exporters still profitable contracts 421 543 /new. And if tax rates increase exports of cassava from 0% to 5%, the rate of export enterprises can still be 324,192 VND / ton. From such calculations, to ensure demand for raw materials of cassava for ethanol production, the Ministry of Finance is expected to adjust export tax increase cassava products (group 0714) from 0% to 5%.