March 21, 2023
Vietnam's animal feed sector urges government to remove import tax on soymeal
The Vietnam Feed Association has proposed to the Vietnamese government to remove the 2% import tax set on soymeal, Vietnam News reported.
Vietnam's Deputy Prime Minister Le Minh Khai, under the direction of Prime Minister Phm Minh Chnh, responded to the proposal by giving the country's Ministry of Finance the go-ahead to work with relevant ministries and branches to study the association's recommendations and submit them for consideration in accordance with the law.
Vietnam's Ministry of Finance shall assume primary responsibility along with relevant ministries and branches to study, consider, and handle the association's recommendations on amending pertinent documents on import tax.
The Vietnam Feed Association said that as of the end of December 2021, the import tax on wheat had been reduced from 3% to 0% and the import tax on corn from 5% to 2%.
The association said soymeal is a high cost commodity and the primary raw material for pork and seafood bran, but it has a 2% import tax, which puts pressure on the cost of feed production.
The association also said keeping the 2% import tax rate on soybean meal would drive feed prices to all-time highs and result in other issues. Bit lowering import taxes would increase the domestic feed industry's competitiveness against other countries, and control inflation.
- Vietnam News