Government approval 'backward' cassava export tax

On 26/8, the Government Office issued the text conveys the opinion of Deputy Prime Minister Vu Van Ninh, on behalf of the Prime Minister, agreed in principle with the proposal "back" earlier cassava export tax the Ministry of Finance.
Specifically in this document, Deputy Prime Minister Vu Van Ninh agreed in principle with the proposal of the Ministry of Finance in writing 10 420 / BTC-CST dated 07.29.2015 on export taxes for cassava.

Deputy Prime Minister asked the Ministry of Finance pursuant to Article 11 of Decree 87/2010 / ND-CP dated 13/08/2010 of the Government detailing the implementation of some articles of the Law on export tax, import tax and only direction of the Prime Minister in Notice No. 19 / TB-VPCP 26.01.2015 of the Government Office, to handle export tax specifically for cassava under the authority, to ensure compliance with reality and encourage the production and consumption of cassava.

Earlier, in writing 10 420 / BTC-CST, the Ministry of Finance has reported to the Prime Minister for permission to pause the implementation of Circular No. 63/2015 / TT-BTC (Circular 63) to solve problems immediately DN and cassava growers for this year's crop. Namely unrealized right to tax exports of cassava under Notification No. 19 / TB-VPCP 26/01/2015.

The reason according to the Finance Ministry, because the amount of cassava in inventories (500,000 tons) now if exports lose and exporters of cassava would reduce purchase prices, reducing purchasing to cassava production is growing this season farmers.

Accordingly, the stop performing TT 63 will solve problems for exporters of cassava chips (due to policy changes in inventories led to much and being mold, fungi, reducing the quality increases gradations so is the rainy season in this region), and cassava farmers.

At the same time the Finance Ministry proposed to amend No. 63 according to the order and procedures prescribed by the Law on Promulgation of legal documents towards adopting cassava export tax of 1% or 2% from 1 / 1/2016.

The basis for this proposal under the Ministry of Finance, the price for export at month 12/2014, the average export price of 2015 now, if applicable rate 5% export tax, businesses would suffer losses 10 USD / ton (equivalent to 229,250 VND / ton). If applicable rate 2% export tax, businesses would suffer losses 5,2USD / t (equivalent to 114,000 VND / ton), and if applicable 1% export tax rate, companies will suffer losses 2 USD / ton (equivalent equivalent 43,600 VND / ton, excluding the costs incurred related to the inventory as of the moment).

With tax rates of 1% or 2%, but businesses still holes to exporters to rebalance calculate related costs, purchase price of cassava from farmers and export prices of cassava.

Also according to the Ministry of Finance, after a revised Circular No. 63, the Ministry will continue to monitor for ascending route export tax rates to suit cassava roadmap Biofuels applied in Decision 53/2012 / QD-TTg and the actual situation of production and consumption of cassava in the country, ensuring harmony between the interests of the state, businesses and farmers to grow cassava. /.