May 8, 2024

Vietnam's Ministry of Finance declines import tax reductions on animal feed materials

Vietnam's Ministry of Finance has rebuffed proposals to lower import tax rates on crucial materials for animal feed production, as proposed by voters in Ben Tre province, Vietnam News Agency reported.

Concerns were raised by Ben Tre province's voters regarding the financial strain faced by livestock households due to low selling prices of agricultural products like shrimp and beef, coupled with high feed costs. They urged the ministry to consider reducing taxes on animal feed input materials to alleviate financial burdens and decrease overall product costs.

In response to Ben Tre province's petition, the ministry cited existing preferential import tax rates on raw materials for animal feed production as sufficient to foster domestic industry growth and reduce reliance on imported inputs.

The ministry highlighted previous reductions in preferential import tax rates, including reducing rates to zero for wheat (previously 5% and 3%) and to 2% for corn (previously 5%). Additionally, some materials like fine flour, raw flour, post-slaughter by-products, bran, and broken rice enjoy nearly zero preferential import tax rates.

While certain materials essential for poultry and swine production are subject to a 3% preferential import tax rate, soybean meal incurs a 2% tax. Notably, raw materials lacking domestic production enjoy a preferential import tax rate of zero, aimed at reducing production costs.

Moreover, the ministry affirmed the continuation of reductions and extensions of taxes, fees, and charges to support the domestic livestock industry.

Recent proposals from various ministries, branches, and associations have advocated for reducing the import tax rate on soybean meal. The ministry is currently soliciting feedback from these entities and the Vietnam Chamber of Commerce and Industry to compile a comprehensive proposal for submission to the Government.

-      Vietnam News Agency