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VBA proposal does not change the calculation of excise tax

The foreign members of the VBA, and is a member of the Subcommittee on wines and spirits of the European Chamber of Commerce in Vietnam, are worried because of the Bill amending and supplementing some articles of the law on The government has submitted to the tax, the Finance Ministry has changed dramatically in price calculated excise tax for imported goods compared with the current provisions of the Excise Tax Act.

(Saigon Times Online) - The international members of the Association of Beer - Alcohol - Beverage Vietnam (VBA) has a petition posted Chamber of Commerce and Industry of Vietnam said they are very worried about the proposed correction Excise tax change of the Ministry of Finance.
The foreign members of the VBA, and is a member of the Subcommittee on wines and spirits of the European Chamber of Commerce in Vietnam, are worried because of the Bill amending and supplementing some articles of the law on The government has submitted to the tax, the Finance Ministry has changed dramatically in price calculated excise tax for imported goods compared with the current provisions of the Excise Tax Act.

Proposal to change the calculation of excise duty of the Ministry of Finance may be detrimental to the international business members of the Association of Beer - Alcohol - Beverage Vietnam. Photo: Quang Chung


Specifically, the law creating the valuation used for calculating the special consumption tax on imported goods "imported taxable price plus import duty"; while the bill define "the price set by the importer sold out", if sold by subsidiaries, the "prices by subsidiaries sold in the market."
According to international members of the VBA, with a special consumption tax calculation above, if the bill is passed (expected to be passed in the National Assembly session later this year), it will be "huge impact" to their business activities. Since then, special consumption tax, liquor, beer (in particular) will increase, not decrease as expected of them in the free trade agreements the EU - Vietnam (FTA) signed in May 8-2015.
The international members of the VBA for that changing the price used for calculating excise duty by the Finance Ministry's proposal to "deal" with the possibility of tax losses in the future, when the tariff reduction schedule Imports in the free trade agreements that Vietnam committed to take effect. So then, if the taxable base price under current law (dutiable imports plus import duties), the import duty reduction (roadmap commitments) also means excise tax will decrease.
Solution changing the basis for calculating excise duty of the Finance Ministry today, according to the international members of the VBA, is "not fair". As "tax cuts under the free trade agreement is the result of negotiations to ensure the interests of the parties to the agreement, which Vietnam's commodities exports were also cut tax rates, and that This has been taken into account in the negotiation process, "according to the text that is sent to members Chamber of Commerce and Industry of Vietnam.
The international members of the VBA, said that the proposed changes calculating excise taxes to modify immediately the relevant tax laws recently enacted not long would create uncertainty about tax policy, increasing Excise tax amount payable and the negative impact to the business plan short and long term their.
Furthermore, the Bill amending and supplementing some articles of the Tax Code does not lie in the program on building laws and ordinances in 2015 ... So, in writing to the Chamber of Commerce and Industry of Vietnam, International members VBA proposal unchanged for the tax treatment of imported alcohol products as currently applied current.

Quang Chung

 

 

 

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