08/11/2015 09:50 GMT+7 Email Print Like 0

Ministry announces goods exempt from tax under TPP

Hanoi, November 7 (VNA) - The Ministry of Finance on November 6 officially announced the list of goods which will enjoy tax reduction when the Trans-Pacific Partnership (TPP) agreement is signed and takes effect.

The ministry said the TPP's members committed highly open to Vietnam. Around 78 to 95 percent of taxes will be removed as soon as the pact becomes effective. The taxes on the remaining goods will be removed within five to 10 years, excluding some sensitive goods.

Several Vietnamese key export items in the TPP market such as agricultural products, seafood, garments and textiles, and shoes, in addition to wooden furniture, electronics and rubber, will enjoy zero tax three to five years later.

In terms of imported taxes, Vietnam commits to applying a common tariff for all the TPP members, of which, 65 percent of tariffs will be removed for animal feed, milk, rice, and leather, apart from leather products, cotton, garments and textiles, and fertilisers.

Cosmetics, machines, equipment, and wooden furniture will also see a 65 percent reduction in tariffs. Around 98 percent of tariffs will be removed after 10 years, while the remaining goods will have a roadmap of more than 10 years or applying Tariff-rate Quota (TRQ).

In terms of export taxes, Vietnam is committed to removing tariffs for most items having export tax applied under the 5 to 15 year roadmap after the pact comes into effect. Some important products will continue to retain the tax.

The ministry said the TPP's members had completed technical reviews and necessary procedures for preparation of the official signing at the beginning of 2016.
VNA/VNP