PM backs VAT exemption for animal feed

Sep 03, 2014 / 10:11 AM

The Prime Minister is supporting the proposal of the Ministry of Finance to include animal feed in the list of products exempted from value added tax (VAT) payment.

The Prime Minister told the ministry to submit for review and approval the proposal at the Eighth Session of the 13th National Assembly due late this year.

A five per cent VAT rate is currently being imposed on animal feed. The proposed exemption aims to stabilise the price of feed in the domestic market and benefit the farmers, who have had to deal with diseases, declining consumption and other difficulties in breeding farm animals in recent years.
The farmers' situation further worsened following the increase in feed prices last year. The Department of Livestock Production attributed the increase to the country's dependence on imported raw materials for production and foreign producers' domination of the industry.
Figures from the Ministry of Agriculture and Rural Development showed that Viet Nam has 58 animal feed producers with more than 200 feed production plants. Foreign animal feed producers make up one-third of the total and account for around 65 to 70 per cent of the market.
According to Nguyen Dang Vang, President of the Viet Nam Husbandry Association, a VAT exemption for animal feeds is good news for farmers, who expect the price of animal feed to fall.
To further boost breeding and aquaculture and ensure that Government support reaches the farmers, the Ministry of Finance has been asked to help the Ministry of Agriculture and Rural Development and other concerned authorities in tightening management of the pricing of imported and locally-produced animal feed, as well as quality standards for and measures to protect local animal feed production.
Regarding tax policies on agricultural inputs such as fertilisers, pesticides and veterinary medicine, the Prime Minister ordered concerned ministries to formulate policies that conform with the Government's agricultural development and taxation system reform strategies for 2011-20.

Reactions:

Rất hay

Thích

Giải trí

Cần cải thiện

Trending

Vietnam OCOP Festival 2025 honors products as program marks nationwide development milestones

The festival aims to promote and honor outstanding OCOP products and producers and to reaffirm Hanoi’s leading role as the country’s “pacesetter” in the One Commune One Product (OCOP) program.

17 Dec, 07:06 PM

Vietnam posts five-year high FDI disbursement as investor confidence strengthens nationwide 2025

Despite global economic and geopolitical headwinds, foreign capital flows into Vietnam accelerated in 2025, with investment increasingly concentrated in high value-added sectors, highlighting the country’s growing appeal as a stable, long-term destination for investors.

16 Dec, 10:12 PM

VN-Index set for 2,200-mark next year: JP Morgan

Vietnam’s appeal goes beyond the upgrade, driven by major economic reforms that are lifting business and consumer confidence, as well as improving profit prospects over the next three to five years.

16 Dec, 03:35 PM

Vietnam to launch smart agriculture innovation center in Lang Son

The center is expected to bridge gaps in technology testing, connect farmers with researchers and markets and accelerate sustainable, high-tech agricultural development nationwide.

15 Dec, 07:28 PM

Hanoi urged to train 100,000 digital engineers through online academy

The Capital Strategic Technology Development Forum gathered a wide range of proposals from businesses, experts and investors on how Hanoi should shape its deep-tech development agenda in the coming decades with a long-term vision to 2045.

15 Dec, 07:16 PM

Inclusive innovation must give everyone equal voice, experts say at TECHFEST Vietnam 2025

Open innovation is becoming a cornerstone of Vietnam’s development strategy, as policymakers, experts and international partners emphasize people-centered collaboration to tackle inequality, climate change and urbanization through inclusive, technology-driven solutions showcased at TECHFEST Vietnam 2025.

14 Dec, 02:17 AM

Vietnam attracts $400 million in venture capital as tech startups surge

Vietnam’s startup ecosystem continues to expand rapidly, with strong venture capital inflows and fast growth in digital, AI and green technologies, reinforcing the country’s appeal to global investors.

13 Dec, 04:40 PM

Vietnamese policymakers push for early launch of gold exchange

A transparent gold exchange would not only offer a safe investment channel for the public but also provide a foundation for Vietnam to become a regional hub for jewelry manufacturing and exports.

12 Dec, 04:05 PM