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VN to cut ASEAN import taxes

06/08/2010 - 230 Lượt xem

The ministry has compiled a list of goods that will enjoy preferential tariffs (from 0-5 per cent) over the next eight years under the regional Common Effective Preferential Tariff (CEPT) trade agreement.

Of the 10,000 products eligible for the tax-cut plan, a majority will see some reductions by this year. Rice and foodstuffs, which are now subject to rates as high as 50 per cent, will also see cuts down to 5 per cent.

Import tax rates on vans, pick-up trucks and similar vehicles imported as CBU (complete built units) and CKD (complete knocked down) products will see 20 per cent tariffs during 2006-07, 10 per cent in 2008 and 5 per cent in 2009.

The CEPT, which is part of the plan to build an ASEAN Free Trade Area (AFTA), came into force in January 1992, aiming to remove all trade barriers among ASEAN countries and attempting to create a common market for 500 million consumers in the area.

In 2003, six founding countries–Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand–finalised their tax reductions to 0-5 per cent for most categories of products.

Viet Nam has nearly finished its tax cuts since the beginning of 2006. The tax rates will be totally abolished by 2010 for the six founding countries and by 2015 for the three other members–Laos, Myanmar and Cambodia.

In order to enjoy preferential tax rates, imported products must have at least 40 per cent ASEAN-made content.
Source: Vietnamnews, 15/3/2006