Pham Thai and Ngoc Hung
The Vietnam Coffee and Cocoa Association (Vicofa) and Vietnam Sugar and Sugarcane Association (VSSA) have sent documents to the General Department of Tax to ask for VAT reduction from 5% to 0%.
Tax evasion has occurred over the past time while enterprises have met difficulties in VAT refunds, resulting in high risks in their business, the associations explained.
As Vietnam exports almost of its coffee output, levy of VAT then refund are not necessary, Vicofa said.
Do Ha Nam, vice chairman of Vicofa and general director of Intimex Group Joint Stock Company, said that VAT should be abolished as coffee exporters will get tax refund. Therefore, enterprises will save time for conducting tax refund procedures, Nam said.
Meanwhile, member enterprises of VSSA also want VAT to be removed, saying that this will help them compete with imported sugar.
Nguyen Ba Chu, general director of Société De Bourbon Tay Ninh Company, in a recent meeting said that 41 sugar factories in the country have generated revenue of around VND22.5 trillion each year and contributed over VND2 trillion of VAT and corporate income taxes to the State budget.
However, administering agencies have yet to release specific policies to support the industry. Smuggled sugar still dominates the market, reaching up to 400,000 tons a year, or 30% of total sugar output in the country, Chu said.
Concerning this suggestion, Bui Van Chuan, deputy head of Daklak Province’s Tax Department, said that the General Department of Tax and the Ministry of Finance will invite related sides to a meeting to discuss the problem in the next few days. Representatives of provincial tax agencies from Dong Nai, Binh Duong, Daklak and Lam Dong and the associations will join this meeting.