It puts them at a cost disadvantage against foreign rivals.
That was the comment from the Vietnam Chamber of Commerce and Industry (VCCI) on the Law on Value-Added Tax (VAT) that has been under revision recently.
VCCI said under the law, certain categories of goods and services had been made VAT-free, including unprocessed agricultural products, fertilisers, animal feeds, and farm equipment. The status has saved domestic producers a nice chunk of their profits for tax but made them ineligible for input VAT credits.
Meanwhile, imports of the same categories, despite having been entitled to input VAT credits in their original countries, are given the same tax privileges when entering Việt Nam.
Source: einnews.com
