Vietnam to Cut Import Tax on Sugar for Price Stabilization

The Vietnamese government finally agreed to allow an import tax cut on sugar, worrying that surging sugar prices due to the increasing local demand and short supply will exacerbate the country’s inflation.

Vietnam’s Finance Ministry announced that it will reduce the import duties on sugar to 15 percent, starting on April 15. The current tariff on refined sugar and crude sugar is 40 percent and 25 percent, respectively.
Local companies with demand for sugar have been longing for a smaller import duty since last August, expecting the supply from regular exporters such as Thailand and Southeast Asian countries will fall short with the arrival of the Vietnamese lunar new year Tet.

The sugar price mounted to VND24,000 during the past Tet Holiday, although the state price stabilization program urges the number to stay below VND18,000.

Compared to 2010’s 30,000 ton-import quota on sugar, this year Vietnam’s Ministry of Industry allows a maximum of 25,000 ton-import of both raw and refined sugar.

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