Materials imported for export production exempted from taxes since Sep.1

The General Department of Vietnam Customs said at a seminar on June 2 that the new tax regulation approved by the National Assembly on April 6 which will take effect on September 1 will help reducing administrative formalities and enterprises’ expenditure.

Materials for production of exported goods exempted from tax since Sep.1

The highlight of the new law is that materials and accessories imported for manufacturing export commodities will be exempted from taxes. Additionally, imported goods with a small value or taxes will be free from tax also.

The new regulation is expected to reduce enterprises’ expenditure and it accomplices with Vietnam’s pledge in international commercial agreements such as Trans-Pacific Partnership (TPP) or the World Trade Organization (WTO).

Yet a representative from the Association of Commodity and enterprises expressed their concerns that some content of the new regulation is not clear; accordingly related agencies should review and amend.

For instance, the regulation says that enterprises enjoy tax exemption only as enterprises have own production factory in the country and import right materials for its manufacturing.

In addition, enterprises proposed the government issuing comprehensive regulation for a long term so that enterprises can outline production strategies.

By Lac Phong – translated by Anh Quan

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