On May 18, the Ministry of Finance held a seminar on “Effectively implementing Vietnam’s commitments on preferential export tax and special preferential import tax in the implementation of FTAs”.

Mr. Pham Tuan Anh, Deputy Director of the International Cooperation Department (under the Ministry of Finance) said that Vietnam implements its commitments on preferential export tax and special preferential import tax under the framework of 15 FTAs and two Preferential trade arrangements (PTAs).

In order for ministries, sectors, business associations and enterprises to have an overview of the content of 17 decrees on promulgation of Vietnam’s preferential export and special preferential import tariffs to implement FTAs, Economic Partnership Agreements in the new period, the speakers discussed and assessed the performance and identified problems and proposed effective solutions to make use of benefits from the implementation of commitments on import and export taxes, thereby promoting import-export and economic growth.

At the seminar, Ms. Nguyen Phuong Linh, Head of Multilateral Financial Integration Division (International Cooperation Department, Ministry of Finance) said that provisions in the decrees are fully inherited regulations in the Decrees promulgating Vietnam’s preferential export and special preferential import tariffs to implement FTAs/PTAs in the previous period (2018-2022) to ensure stability on policies and strictly comply with the tariff reduction roadmap committed in these agreements.

The Decrees are consistent with the guidelines and policies of the Party, constitutionality and legality; ensure consistency in the legal system and are in line with international treaties to which Vietnam is a member.

According to data from the Department, the preference utilization rate of FTAs is mostly at over 70%. The rate of EVFTA and UKVFTA is at 37% and 23%, respectively. However, this rate of some FTAs has not yet achieved the expected rate such as ACFTA with China market at 30%; AJCEP and VJEPA with Japan at 6% and at 17%, respectively.

Ms. Nguyen Thi Thu Trang, Director of the Center for WTO and Integration (VCCI), said that businesses should carefully study the preferential commitments of agreements.

She also suggested that the management agency should directly stipulate the most basic conditions to enjoy tax incentives as well as clearly define the process of enjoying preferential export tax.

At the seminar, the participants and representatives of enterprises discussed contents related to matters of businesses in the implementation of commitments on preferential export and special preferential import.

Source: Customs News