Steel industry protests tax plan

The Vietnam Steel Association has urged the government not to impose the 3 percent tax on steel exports proposed by the Ministry of Finance.

The tax was mooted last month after the MoF said the steel industry was taking advantage of cheap electricity from Electricity of Vietnam Corp – it pays only VND1,242 per kWh instead of the normal VND1,777.

However, the VSA said steel embryo (huh?), which is produced mainly for domestic supply, consumed the highest amount of electricity at 600 kWh per ton while other products made for export, such as construction steel and pipes, required only 100 to 120 kWh.

The exports must remain tax-free to also reduce the large trade deficit, it added.

Last year Vietnam’s steel exports were worth only US$1.05 billion compared to $6.15 billion worth imports.

Tags: Vietnam steel industry, Vietnam steel market, Vietnam steel prices

Posted by VBN on Jun 18 2011. Filed under Steel. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry