VietNamNet Bridge – Enterprises complain that their profit has been decreasing since the Decision No 67 on raising the tax rates on mineral exports came into effect.
The decision, which was promulgated one year ago, set higher export tax rates on export minerals. For example, the tax rate on copper ore has been raised to 10% from 0%, while the rate on nickel ore rose to 5% from 0%.
According to the Ministry of Finance’s Tax Policy Department, the imposition of higher tax rates aims to protect natural resources and avoid the bad impacts on the economy and the environment. Besides, the ministry aims to encourage investment in ore processing industries instead of exporting raw materials
Nevertheless, the decision by the ministry has been facing opposition from foreign invested enterprises (FIEs). There are two problems in the Decision 67 that FIES have been complaining about.
The Canadian Chamber of Commerce in Vietnam said that enterprises’ products now bear the double taxation as they have to pay export taxes in accordance with the Decision 67, and the natural resource tax in accordance with the Ordinance on Natural Resource Taxation
The second problem is that the decision did not clarify the method to define the taxable value, and method of tax calculation. Therefore, even taxation agencies do now know how to tax the export mix of nickel, copper and cobalt, because they cannot define the percentage of nickel, copper and cobalt in the mix to impose taxes.
FIEs said that taxation agencies should only calculate taxes after defining the exact ratio of every metal in the mix of metals. FIEs will export ores, and then foreign refineries will inform Vietnamese taxation agencies about the ratio of metals after the refinement, which will be referred by the agencies to calculate tax.
FIEs’ representatives said that Vietnam should build up the mechanism on export tax refunds. For example, while exporting a consignment of ore, exporters will have to pay a temporarily defined tax sum. After foreign refineries inform about the ratio of collected metal, taxation agencies will know how much to tax ore exporters, and they will either to collect more taxes or make refunds to exporters.
However, the suggestion has not been accepted by Vietnamese management authorities, and there has been no solution to the mineral taxation matter.
(Source: Viet nam Net) | 
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