A draft amendment to the Law on Import and Export Taxes, which exempts export businesses from paying tariffs on imported machinery and raw materials rather than claim refunds as they do now, has received support from many businesses.
A seafood factory. Photo: Trung Hieu
Business executives were speaking at a conference organized by Vietnam Customs, which drafted the amendments, and the US Agency for International Development in Ho Chi Minh City on Friday, news website Saigon Times Online reported.
Now most businesses have to pay tax at the time of importing capital goods and feedstock, and apply for refunds after they export.
Some are given 275 days to export using the imported materials, Truong Dinh Hoe, general secretary of the Vietnam Association of Seafood Exporters and Producers, was quoted as saying.
If they complete the exports, they have to apply for tax waiver, or else they have to pay the taxes and then seek a refund, he said.
If the amendment is passed, businesses can save time and costs, he said.
Dang Phuong Dung, vice chairwoman of the Vietnam Textile and Apparel Association, also hailed the proposal saying it would encourage textile companies to manufacture for export rather than subcontract like now.
The amendments will be submitted to the National Assembly this October.