The Viet Nam National Coal and Mineral Industries Group (Vinacomin), the country's largest coal supplier, has asked the Government to reduce the tax rate on coal exports.
HA NOI - The Viet Nam National Coal and Mineral Industries Group (Vinacomin), the country's largest coal supplier, has asked the Government to reduce the tax rate on coal exports.
Vinacomin is calling for the tax rate to be lowered from 20 per cent to 0 per cent due to the steady decline in world coal prices and falling demand.
Coal firms producing lump coal and smaller-sized coal have seen sharp falls in coal export prices, up to 30 per cent compared to last September when tax on coal exports was raised.
In addition, falling global coal sales motivated the call for the export tax cut. According to the Ministry of Industry and Trade (MoIT), many industrial sectors in the region and the world such as producers of paper, cement, fertiliser amongst others, have been buying less coal for production.
During the first four months of the year, Vinacomin sold nearly 13 million tonnes of coal, a 9 per cent decrease compared to the same period last year. Coal exports during the first four months totalled 3.9 million tonnes, a fall of 3.1 per cent over the same period last year.
About 8.4 million tonnes of coal were left in storage unsold as of last month. Coal refinery products account for three fourths of the total, at nearly 6 million tonnes. - VNS