Cage fish farming village in Chau Doc. Illustrative photo: Vu Sinh/Vietnam News Agency
According to the document sent to the Ministry of Finance through the Ben Tre province’s Delegation for Constituents/Voters, the prices of several agricultural products such as shrimp and beef have plummeted, while feed prices have skyrocketed, resulting in many farming households suffering losses and having to “close ponds and hang up cages”. For this reason, the constituents request that the Ministry of Finance consider submitting a proposal to competent authorities to reduce input taxes on animal feed in order to lower its production cost, thereby facilitating production and farming for farmers.
In response to the constituents’ request, the Ministry of Finance stated that the current preferential import tax rates for animal feed products such as fine powder, coarse powder, slaughter by-products, bran, and broken rice are largely 0%; except for preparations used in livestock farming for certain species (preparations for poultry, pigs, etc.) which have a preferential import tax rate of 3%, and soybean meal which is 2% (these are products that are partially produced domestically).
The stipulation of preferential import tax rates for raw materials used in animal feed production ensures the principle of promulgating the Tariff, tax rates stipulated in Article 10 of the Law on Export Tax, Import Tax No. 107/2016/QH13 dated April 6, 2016, encourages the development of the domestic animal feed production industry in order to gradually create self-sufficiency in supply, reduce dependence on imported raw materials, and ensure harmony of interests between livestock farmers and domestic and imported animal feed suppliers.
Preferential import tax rates of 0% are stipulated for raw materials that are not yet domestically produced in order to reduce production costs; products that are partially produced domestically have lower tax rates to support businesses producing animal feed and increase production, while simultaneously reducing feed production costs.
In addition to solutions on extending, reducing, and deferring taxes, fees, and charges, in order to continue supporting the domestic livestock industry, the Ministry of Finance has submitted to the Government Decree No. 101/2021/ND-CP dated November 15, 2021 amending and supplementing several articles of Decree No. 122/2016/ND-CP dated September 1, 2016 and Decree No. 57/2020/ND-CP dated May 25, 2020, which reduces the preferential import tax rates for several important products used in animal feed production, such as wheat from 5% and 3% to 0%, and corn from 5% to 2% (corn is partially produced domestically).
Recently, the Ministry of Finance has also received a proposal to adjust the import tax rate for soybean meal (a raw material for animal feed production) from several ministries, agencies, and associations. This proposal has been summarized by the Ministry of Finance in Official Letter No. 12502/BTC-CST dated November 15, 2023, which seeks opinions from ministries, agencies, localities, and the Association on the contents of the draft Decree amending and supplementing several articles of Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government on Export Tariff and Preferential Import Tariff (draft Decree).
The Ministry of Finance is currently synthesizing the opinions of ministries, agencies, the Vietnam Chamber of Commerce and Industry, and the Federation of Commerce and Industry to finalize the draft Decree and will report to the Government on the amendment plan for submission to the Government for approval in accordance with the Law on the Issuance of Legal Documents.
