Vietnam feed prices too high due to taxes

14-12-2007 | |

The Vietnamese Ministry of Agriculture and Rural Development (MARD) continues to petition the government for a reduction in import taxes on animal feed due to escalating world prices, said Department of Animal Husbandry director Hoang Kim Giao.

The ministry made plans to convince the government to allow foreign-invested
companies in Vietnam who import unprocessed materials for animal food processing
to sell these materials to all processors. The current regulations allow them
selling imported materials to distributors only.

MARD also requested the
removal of a value-added tax on cassava, maize and soybeans to improve
conditions for producers purchasing directly from farmers instead of going
through middlemen.

Tax exemptions
The petition suggests the
government lengthen the period of paying VAT taxes on certain materials up to 90
days after registering with customs. Additionally, tax exemption should continue
on items such as wheat flour, beans, L-Lysine and whey.

Giao stated that
the agriculture industry needed to come up with new animal feed materials for
production instead of relying on temporary solutions.

No local producers
wanted to increase animal feed prices because of the effect it had on domestic
livestock breeding.

However, prices sky-rocketed this year for maize and
soybeans, said the general director of Charoen Pokphand Group.

government would carefully consider reducing import taxes, while taking into
account that the last reduction cost thousands of billions of dong while animal
feed prices still remarkably surged, said a spokesman for the Ministry of

He said most local agricultural produce prices remained higher
than those outside the country.

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