Tariff hikes help reduce meat, poultry imports

Hanoi (VNA/VNS) - Two import tax hikes have significantly reduced the quantity of imported meat and poultry entering the country, according to the Agricultural Information Centre under the Ministry of Agriculture and Rural Development.

The centre said total imports of meat and poultry declined by roughly 21-24
percent compared to the period before the tax hike.

Last October, the Ministry of Finance (MoF) increased import duties on meat and
poultry for the first time by 2 percent in order to curb a flood of imported goods
into the country.

Ministry of Industry and Trade statistics showed that in 2008, roughly 4,250
tonnes of beef and 1,000 tonnes of other meat were imported monthly compared to
only 333 tonnes of beef and 10 tonnes of meat in previous years.

However, the tax hike did not do enough to prevent the influx of imported meat
and poultry.

To provide better protection for the domestic husbandry industry, in response to a
Ministry of Agriculture and Rural Development proposal, the MoF instituted a
second tax surge early last month, with a sharp rise from 17 to 33 percent on
fresh and frozen beef.

Import duties on fresh and frozen pork were also raised to 28 and 24 percent,
respectively.

Pork, beef, lamb, mutton, goat and horse by-products also have higher rates than
previously, ranging from between 10 and 15 percent depending on type.

The Agricultural Information Centre admitted that although the increased taxes
have indeed resulted in higher prices, the surge in most cities and provinces,
exclusive of Hanoi and HCM City , has been insignificant.-Enditem