The Ministry of Finance recently announced the list of goods which will enjoy tax reduction when the Trans-Pacific Partnership (TPP) agreement is signed and takes effect.

The ministry said the TPP's members committed highly open to Viet Nam. Around 78 to 95% of taxes will be removed as soon as the pact becomes effective. The taxes on the remaining goods will be removed within 5 to 10 years, excluding some sensitive goods.

Several Vietnamese key export items in the TPP market such as agricultural products, seafood, garments and textiles, and shoes, in addition to wooden furniture, electronics and rubber, will enjoy zero tax 3 to 5 years later.

Ministers of TPP negotiating countries at a press conference in Maui, Hawaii (Source:Reuters/VNA)

In terms of imported taxes, Viet Nam commits to applying a common tariff for all the TPP members, of which, 65% of tariffs will be removed for animal feed, milk, rice, and leather, apart from leather products, cotton, garments and textiles, and fertilisers.

Cosmetics, machines, equipment, and wooden furniture will also see a 65% reduction in tariffs.  Around 98% of tariffs will be removed after 10 years, while the remaining goods will have a roadmap of more than 10 years or applying Tariff-rate Quota (TRQ).

In terms of export taxes, Viet Nam is committed to removing tariffs for most items having export tax applied under the 5 to 15 year roadmap after the pact comes into effect. Some important products will continue to retain the tax.

(Source: VNA)