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Vietnam makes good on Indian import tax cut
Tuesday, 04 May 2010
Vietnam will reduce tax rates and abolish tariffs
applied to 7,640 categories out of 9,222 of the current import tariffs as
promised in the ASEAN-India Free Trade Area (AIFTA) agreement.
Under the Finance Ministry’s recent circular on Vietnam’s
preferential import tariffs for the 2010-2012 period, 2,200 out of 7,640 tariff
lines will enjoy lower AIFTA import tariffs than the current rates applied to
most-favoured nations (MFN).
Groups of commodities that will enjoy the tax
break include plastic, paper and cardboard, cotton, fibre, clothes, toys, means
of transport, products made of stone and gypsum, products made of steel or iron
and machines and equipment.
Certain items will be subject to the MFN tax rate
where it is lower than that under the AIFTA, according to Circular No.
58/2010/TT-BTC, which will come into effect as of June 1.
