Tariff Rises Have Helped Cut Imports

VIET NAM - Tariff hikes have helped to reduce imports of meat and poultry products.
calendar icon 7 April 2009
clock icon 2 minute read

Officials say that two import tax hikes have significantly reduced the quantity of imported meat and poultry entering the country, according to the Agricultural Information Centre under the Ministry of Agriculture and Rural Development.

The centre said total imports of meat and poultry declined by 21 to 24 per cent compared to the period before the tax hike.

Last October, the Ministry of Finance (MoF) increased import duties on meat and poultry for the first time by two per cent in order to curb a flood of imported goods into the country.

Ministry of Industry and Trade statistics showed that in 2008, roughly 4,250 tonnes of beef and 1,000 tonnes of other meat were imported monthly compared to only 333 tonnes of beef and 10 tonnes of meat in previous years.

However, the tax hike did not do enough to prevent the influx of imported meat and poultry.

To provide better protection for the domestic husbandry industry, in response to a Ministry of Agriculture and Rural Development proposal, the MoF instituted a second tax surge early last month, with a sharp rise from 17 to 33 per cent on fresh and frozen beef.

Import duties on fresh and frozen pork were also raised to 28 and 24 per cent, respectively.

Pork, beef, lamb, mutton, goat and horse by-products also have higher rates than previously, ranging from between 10 and 15 per cent depending on type.

The Agricultural Information Centre admitted that although the increased taxes have indeed resulted in higher prices, the surge in most cities and provinces, exclusive of Hanoi and Ho Chi Minh City, has been insignificant.

TheCattleSite News Desk

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