ID :
27390
Thu, 10/30/2008 - 13:56
Auther :
Shortlink :
https://oananews.org//node/27390
The shortlink copeid
Steel-export tax cut to help struggling sector
Hanoi (VNA) - The Ministry of Finance cut the export tax rate for steel products from 5 percent to zero on October 28, with the new tax-free rate set to be applied from November 7.
The move follows increasing calls by the Vietnam Steel Association (VSA)
to scrap the export tax to help the struggling steel industry.
Yesterday's cut, under Decision 92/2008/QD-BCT, is the second time this
month and the third time this year, that the ministry has reduced the export
tax rate . On October 7, the ministry cut the rate to 5 percent from 10
percent and earlier in the year the rate was cut from 20 percent to 10
percent.
The decision follows a request from the Vietnam Steel Association (VSA) to
cut the tax rate to zero, after steel producers continued to struggle
despite the two earlier export tax cut.
Earlier this month, VSA members fixed a minimum selling price of 13.5-14
million VND (818.2-848.5 USD) per tonne for steel in the domestic market to
avoid a price war between producers struggling to sell steel stocks that
would lead to a substantial fall in prices for steel products.
Steel companies have an estimated 360,000 tonnes of steel products in
stock and 540,000 tonnes of steel ingot, with a total value of 1 billion
USD, according to the Vietnam Steel Association.
September was the forth consecutive month to witness declining steel
consumption, putting further pressure on producers. Steel consumption in
September was at 110,000 tonnes, far lower than the 337,000 tonnes consumed
in May, said the association.
The selling price of complete domestic steel products was 13.5-13.7
million VND (818-830 USD) per tonne, excluding value added tax, 40 percent
lower than two months ago.
The selling price of imported steel products is low thanks to declining
steel ingot prices on the international market the association said. The
price o steel ingot on the international market is now 540 USD per tonne, 50
percent lower than in July.
Chairman of the VSA, Pham Chi Cuong, said price fixing is illegal in
Vietnam , but there was no other way to tackle the steel industry's
current problems.
Cuong said the VSA would explain what it view as a temporary solution to
the Ministry of Industry and Trade's Competition Administration Department.
The Ministry of Industry and Trade's Vietnam Competition Administration
Agency said the division investigating activities that restrict competition
would study VSA price-fixing and decide whether or not it violated the
law.-Enditem
The move follows increasing calls by the Vietnam Steel Association (VSA)
to scrap the export tax to help the struggling steel industry.
Yesterday's cut, under Decision 92/2008/QD-BCT, is the second time this
month and the third time this year, that the ministry has reduced the export
tax rate . On October 7, the ministry cut the rate to 5 percent from 10
percent and earlier in the year the rate was cut from 20 percent to 10
percent.
The decision follows a request from the Vietnam Steel Association (VSA) to
cut the tax rate to zero, after steel producers continued to struggle
despite the two earlier export tax cut.
Earlier this month, VSA members fixed a minimum selling price of 13.5-14
million VND (818.2-848.5 USD) per tonne for steel in the domestic market to
avoid a price war between producers struggling to sell steel stocks that
would lead to a substantial fall in prices for steel products.
Steel companies have an estimated 360,000 tonnes of steel products in
stock and 540,000 tonnes of steel ingot, with a total value of 1 billion
USD, according to the Vietnam Steel Association.
September was the forth consecutive month to witness declining steel
consumption, putting further pressure on producers. Steel consumption in
September was at 110,000 tonnes, far lower than the 337,000 tonnes consumed
in May, said the association.
The selling price of complete domestic steel products was 13.5-13.7
million VND (818-830 USD) per tonne, excluding value added tax, 40 percent
lower than two months ago.
The selling price of imported steel products is low thanks to declining
steel ingot prices on the international market the association said. The
price o steel ingot on the international market is now 540 USD per tonne, 50
percent lower than in July.
Chairman of the VSA, Pham Chi Cuong, said price fixing is illegal in
Vietnam , but there was no other way to tackle the steel industry's
current problems.
Cuong said the VSA would explain what it view as a temporary solution to
the Ministry of Industry and Trade's Competition Administration Department.
The Ministry of Industry and Trade's Vietnam Competition Administration
Agency said the division investigating activities that restrict competition
would study VSA price-fixing and decide whether or not it violated the
law.-Enditem
