Friday, June 24, 2011

Vietnam moots export tax on coal to follow July hike on iron-ore

Vietnam's Finance Ministry is considering raising the export tax on coal from 15% to 20% to protect dwindling reserves, news website VnExpress reported. It cited a ministry source as saying a higher tax rate will help restrict exports as coal reserves are thinning and the country, a major coal exporter, imported coal from Indonesia for the first time last week.

State-owned Vinacomin plans to import about 10 Mt of coal in 2012, and this is expected to gradually increase to 100 Mt by 2020, the report said.

The ministry recently issued a circular raising the export duty on iron ore to 40% from 30% now to ensure raw material supplies for the domestic steel industry. The new tax rate will come into effect on 2 July.

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