Tax exemptions for bamboo, rattan items

Growers of rattan and bamboo for handicraft production would be charged lower land use taxes beginning April 5, under a recent Prime Minister Decision.

Following Decision 11/2011/QD-TTg, growers of rattan and bamboo products for daily use will be free from paying a land use tax. Those growing bamboo and rattan for other purposes will be subject to a 10 per cent resource tax.

New growers will receive 100 per cent support to buy rattan and bamboo for the first time from provincial People’s committees.

Enterprises will also benefit from the decision, as they will not be charged import tax on an approved list of specialised machines and equipment used to produce rattan and bamboo products.

Interested enterprises are also eligible for the National Foundation for Science and Technology Developments’ sponsorship equal to 50 per cent of project investment to research new technology and 30 per cent to implement the new project upon approval from authorities.

However, as most enterprises are small or medium-sized enterprises, managers said they would not benefit greatly from the new Decision.

“Our products are made mostly by hand. We do not need imported machines,” said Nguyen Ba Thuc, manager of Ba Thuc, a company that produces woven rattan and bamboo products.

Tran Thu Hien, manager of Hien Luong company was of similar mind since it would be unrealistic for her company to research ideas for product improvement.

Nevertheless, Thuc and Hien agreed that the Decision would help develop rattan and bamboo production.

Rattan and bamboo are considered to have significant commercial potential for Viet Nam. They now account for about 10.5 per cent of the country’s total forest area.

About 723 of the country’s 2,017 total craft villages are involved in producing rattan and bamboo products, making it the largest handicraft category. — VNS

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