HA NOI (VNS)— The Ministry of Finance has decided to sharply increase import tax on sugar from January next year as local supplies are forecast to exceed demand.
|Imported sugar is loaded at Sai Gon Port in HCM City. The import tax on raw sugar will increase to 25 per cent from 15 per cent and on refined sugar to 40 per cent from 15 per cent from January next year. — VNA/VNS Photo Thanh Phan
The import tax on raw sugar would increase to 25 per cent from 15 per cent and on refined sugar to 40 per cent from 15 per cent, the ministry said.
The nation's 2012-13 crop was expected to yield around 1.5 million tonnes of sugar, roughly 100,000-200,000 tonnes higher than local demand.
In the domestic market, the sugar price was expected to fall by VND1,000/kg over September to VND20,000/kg while the Ministry of Finance's Price Control Department forecast it would continue to fall.
In April last year, the ministry had to cut the import taxes on raw and refined sugar to 15 per cent from 25 and 40 per cent, because of concern that surging prices due to the increased demand and short supply would push inflation. The price was VND24,000 before Tet last year with the local crop producing only 1 million tonnes of sugar.
Minister of Industry and Trade Vu Huy Hoang said Viet Nam would import 100,000 tonnes of sugar this year because of the country's WTO commitment.
The ministry accepted an import quota of 70,000 tonnes in August, adding that it would work closely with the Ministry of Agriculture and Rural Development and the Viet Nam Sugar Association to decide the most suitable time to grant sugar import quotas to avoid their impact on domestic production. — VNS