Tax exemption for Formosa project equipment

Deputy Prime Minister Nguyen Sinh Hung has just given the nod to a Ministry of Finance proposal regarding tariff exemptions for a $16 billion Formosa’s steel and port complex project.

It covers machinery and equipment imported for the Son Duong port complex in central Ha Tinh province.

Misuse of or failure to re-export the equipment within the set timeline will incur additional tax collections or severe punishments.

The Finance Ministry is responsible for ensuring the principle’s effective enforcement.

Formosa Group gained an investment certificate for developing the giant seaport and steel manufacturing complex two years ago.

The project will produce 15 million tonnes of steel product per year.

The steel complex construction takes four years in the first phase with an annual capacity of 7.5 million tonnes and Son Duong port construction within three years with an annual handling capacity of 30 million tonnes, which will then be doubled to 15 million tonnes and 60 million tonnes, respectively, in the second phase. – VIR

Tags: Formosa project, Vietnam steel industry, Vietnam steel market