Kết nối nghiên cứu với thực tiễn
cho một nền NÔNG NGHIỆP tăng trưởng toàn diện
MoF considering lowering tax on milk imports
04 | 08 | 2007
Truong Chi Trung, Deputy Minister of Finance, said that the ministry would release decisions on lowering import tax rates on several kinds of materials and finished products, including dairy products, in an effort to raise the supplies on the market and curb price increases.
Mr Trung said that the main reason behind the sharp price increases in the last time was the higher price of input materials. Therefore, lowering the tax rates on several key products is the solution being considered.


Experts also said that the milk price increases in the last time have had bad impacts on society, and lowering taxes was the only solution to the problem.


A question has been raised in this case: will the tax reduction on milk materials discourage local production?


According to Tran Bao Minh, Deputy Director of Vinamilk, under the WTO commitments, the tax rates on material imports remain relatively high, at 20-30%, which could be seen as an effective tool to protect dairy farmers. However, in fact, local milk output is mainly being used to make water-based products, while companies still have to use imports to make other products.


“Local farmers will ‘live comfortably’ even if the government lowers the import tax on powdered material milk,” said Mr Minh.


The director of a dairy company applauded the proposal on lowering taxes on material imports. He said that the price increases had caused big difficulties not only for consumers, but dairy producers as well. In fact, locally-sourced material is just enough to meet 22% of local production, while the other 80% can be fed only by imports. To some extent, the policy on local production protection has taken away the opportunities to use dairy products for Vietnamese people.


He said that the retention of the tax rates would only help raise the tax collection for the state budget, while putting a heavy burden on both dairy companies and producers.


Head of the Animal Husbandry Department under the Ministry of Agriculture and Rural Development Nguyen Dang Vang agreed that lowering taxes would be a good solution for now.


If the prices of dairy products become unaffordable for people, they will turn their backs on dairy products. And when people give up the habit of using dairy products, the local milk industry will not develop, as consumers decide the scale of production. Therefore, Mr Vang thinks that the lower tax rate will help stimulate consumption, thus encouraging the development of local herds of cows and the milk industry.


Vo Tri Thanh, Director of the Department of Trade Policy and International Integration Studies, also thinks that the tax policy will benefit consumers.


“It would be a headache for policy makers to think about whether to lower taxes to benefit consumers, or maintain the current tax rate to protect local cow farming. However, I think the government should act for the sake of consumers,” he said, adding that a gradual tax reduction would be fine.

VietNamNet Bridge
Báo cáo phân tích thị trường
  • Phân bón
  • Thủy sản
  • Cao su
  • Sắn
  • Điều
  • Sữa
  • Gỗ
  • Thịt & thực phẩm
  • Hồ tiêu
  • Thức ăn CN
  • Lúa gạo
  • Thuốc trừ sâu
  • Mía đường
  • Thương mại
  • Cà phê
  • Nông thôn
  • Nông nghiệp
Đặt mua báo cáo

Chọn báo cáo