Vietnam again halves steel export tax

09/10/2008 12:00 - 695 Views

The Ministry of Finance has halved the export tax on steel billets to 5 percent, the second such cut within a month, following a demand from the steel association.

The measure, which took effect Tuesday, is expected to help steel companies bolster sales as domestic consumption remains weak. The ministry last month halved the then 20 percent tax.

Steel consumption may stagnate this year after the central bank raised interest rates to fight inflation and the government asked state-owned companies to put off construction projects that are not crucial, the Vietnam Steel Association (VSA) said on September 17.

Investors and contractors also fear the current storm season could impede their projects’ progress.

VSA said many local steelmakers have decided to suspend operations since last month due to stagnant sales. Stocks of more than 400,000 tons of finished steel and 500,000 tons of billets, worth nearly US$1 billion in total, have piled up in warehouses.

Source: thanhniennews.com