|GC duty-free supermarket at Moc Bai border gate. Many duty-free shops at the border gate have closed down.— Photo dongphuongvietbao.vn
TAY NINH (VNS) — About 90 per cent of the 32 tax-free shops and supermarkets at Moc Bai border gate in Tay Ninh province, bordering Cambodia, have shut down due to policy changes.
This was announced by the economic zone management board of the southwestern province.
GC, one of two largest duty-free supermarkets at the border gate, also plans to close down from May 5.
Deputy Head of the management board Pham Van Son said these shops were closing down as a result of changes in preferential policies and long-term business losses.
For example, under Circular 109/2014/TT-BTC issued by the finance ministry, imported products in the non-tariff sections of the border gate economic zones are subject to taxes such as import tariff and special consumption tax or value-added tax, depending on the kind of goods.
The regulation took effect last October.
The Prime Minister also signed a decision in November 2013, barring businesses from selling duty-free alcohol, including wine and beer, to travellers from January 2014.
Several businesses said the regulations would have huge impacts on their trade, Son said. Some businesses started to restrict to importing products to sell at Moc Bai border gate and some tried to keep operating by selling the goods in stock, he said.
A representative from the Ky Vang Company, the owner of the GC duty-free supermarket, told VnExpress that its imported wines worth VND19 billion (US$883,000) were still lying in stock, adding that the company lost about VND3 billion ($139,000) after being unable to sell its products in the first three months of this year.—VNS