Vietnam returns coal export tax back to 10 percent

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Vietnam Ministry of Finance has issued a new circular stating that as of September 1 export taxes imposed on coal were slashed from 13 to 10 percent.

The tax cut, said the Ministry, was made following the proposal of the Vietnam National Coal Mineral Industries Group, or Vinacomin, Tuoi Tre newspaper reported Wednesday.

Vinacomin last month asked for the tax to be reduced back to 10 percent, saying coal exports have seriously reduced since the July hike, which raised the tax to 13 percent.

The firm said during the last two months it exported around 400,000 tons, while it used to sell abroad around 2.6 million tons every two months.

A recent report from the Industry and Trade Ministry said coal exports in July reduced by 91 percent in volume and 80 percent in value compared to June.

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In the meantime, Vietnam aims to limit the number of coal export and some local experts have said the country is expected to import coal by 2015 to meet the demand of local thermo electric power plants.

Previously in September 2012, the government cut the coal export tax in half to 10 percent per the suggestion of the Ministry of Finance, following a proposal from Vinacomin.

The latest statistics from the Vietnam General Customs Department showed that in the first half of August, Vietnam exported 134,000 tons of coal, raising the number of coal exports from the start of 2013 to August 15 to nearly 8 million tons, down 3.8 percent over the same period last year.

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