Ministry of Finance issued a decree to adjust rubber export tax to zero percent last week, aiming to solve exporters’ difficulties because of oversupply.
The current tax is 1 percent.
The new tax level will take effect on Octobers 2, 2014.
Vietnam’s General Department of Customs said that the country’s natural rubber export volume in eight first months was 548,000 tons, earning US$989 million.
However, rubber export saw a decline of 9.8 percent in volume and 31.9 percent in value compared to the same period last year. China and Malaysia are the two leading Vietnam’s consumption markets in first seven months of the year but they imported Vietnam’s rubber less than last year.
Earlier, Vietnam Rubber Association petitioned the ministry to decrease export tax from 1 percent to 0 percent for latex rubber, mixed rubber and crepe rubber, a crude form of natural rubber.