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Now glass producers propose import tax increase

Post Time:Nov 18,2008Classify:Industry NewsView:405

VietNamNet Bridge – The Vietnam Glass Association (Vieglass) has asked the Government to raise the import tax on construction glass products sourced from ASEAN to 20%.

In the recent dispatch sent to the Prime Minister and relevant ministries, the association also asked to the Government to consider lowering mazut prices to the levels equal to that in other regional countries, and setting up technical barriers for glass imports.

According to Vieglass, the stocks of construction glass have become worrying, estimated at 30 million sq m, while the current production capacity is about 100 million sq m a year.

Due to the large stocks, some glass factories have to stop production or have been operating perfunctorily.

The association has blamed the current production at the indifferent level to the overly high domestic mazut price, which is now two-fold more expensive than that in regional countries. Besides, with the low import tax rate, at 5%, ASEAN-made glass products have been overflowing into Vietnam, conquering the market, leading to the market share by domestic producers narrowed.

In the latest news, the mazut price in Vietnam has been lowered by VND 1,500/kg effective November 15 to VND 9,000/kg. Prior to that, the mazut price reached the highest peak on July 21, 2008 at VND 13,000/litre from VND 9,500/litre.

Similar to the story of glass producers, steel producers several days ago also asked for support from the Government by raising the import tax on finished steel products from 8% to 25%. The tax increases aim to prevent the steel products, now excessive in China, from overflowing into Vietnam, which will certainly affect local production.

Prior to that, the Government had to rescue the local breeding industry after farmers complained that the overly low tax rates would kill the local breeding industry. The import taxes on animal and poultry meat have been raised since the beginning of October.

Source: TBKTVNAuthor: shangyi

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