Budget revenue increases by 1.5 trillion/year thanks to trade defense tax

Budget revenue increases by 1.5 trillion/year thanks to trade defense tax

Vietnam has initiated investigations into 29 trade defense cases against imported goods, with 17 trade defense measures in effect, contributing to increasing state budget revenue by about 1.5 trillion VND per year.

The state budget increases revenue by about 1.5 trillion VND each year from tax collection on trade defense cases with imported goods.

According to the Ministry of Industry and Trade , lawsuits, investigations, and application of trade defense measures are still being promoted to restore a fair competitive environment for domestic manufacturing industries in the context of many imported goods showing signs of dumping or being subsidized, causing serious damage to a number of domestic manufacturing industries.

Specifically, by the end of September 2024, out of 29 trade defense cases that Vietnam initiated investigations into, the Ministry of Industry and Trade applied 22 measures to imported goods.

The Department of Trade Defense (Investigation Agency) is continuing to investigate and review trade defense cases.

Accordingly, continue to investigate and review 07 cases initiated in 2023; initiate investigation of 02 new cases, initiate review of 02 end-of-term review cases; receive and process 09 new investigation and review requests.

Currently, out of 29 investigation cases, there are 17 trade defense measures in effect.

"These measures have contributed to ensuring a fair trade environment to prevent negative impacts of imported goods on domestic production and labor, employment, ensuring economic security and social security, increasing state budget revenue by about 1.5 trillion VND per year," the Investigation Agency said.

Regarding the appeal work, by the end of August 2024, there were 257 trade defense investigation cases from 24 markets and territories investigating Vietnam's export goods.

Of these, 141 cases were anti-dumping investigations; 52 cases were self-defense investigations; 37 cases were anti-circumvention of trade defense measures; and 27 cases were anti-subsidy investigations.

In an effort to prevent early investigations of exported goods, the Ministry of Industry and Trade has updated the warning list of goods at risk of being investigated and avoiding trade defense (the list is updated at the end of each quarter) and sent it to relevant ministries, branches, provincial People's Committees, associations, and enterprises for coordination and monitoring.

The work of early warning and supporting enterprises in responding to trade defense cases initiated by foreign countries investigating Vietnamese export goods in recent times has brought about some positive results. Thanks to that, exporting enterprises are not subject to trade defense taxes or are subject to low taxes, contributing to maintaining and expanding export markets.

Exports of manufactured goods in Vietnam have increased rapidly in recent years, but imports of goods and input materials have also increased correspondingly to serve production.

In the first 9 months of 2024, the preliminary import turnover of goods reached 279 billion USD, an increase of 17.3% over the same period last year, with 40 imported items reaching a value of over 1 billion USD, accounting for 91.5% of the total import turnover (there were 3 imported items over 10 billion USD, accounting for 45%).

Trade defense is a policy tool allowed by the World Trade Organization (WTO) for member countries to use to protect domestic industries from unfair competition from imported goods such as dumping or government subsidies; or in cases where a sharp increase in imported goods affects domestic industries.

Therefore, along with the development of global trade, trade defense measures are also frequently used by countries around the world. Economies with larger exports are more likely to become the subject of trade defense measures.

Source: https://baodautu.vn/ngan-sach-tang-thu-15-nghin-tynam-nho-ap-thue-phong-ve-thuong-mai-d227507.html