HCMC – Dong Nai Province-based Bien Hoa Sugar Joint Stock Co. has written to the relevant ministries proposing a tax reduction for crude sugar imports from Brazil to improve local supply amid dwindling stock.
The tax should fall to 5%, equivalent to the level applied in the ASEAN region, according to the company.
The crude sugar stock imported from Thailand is insignificant while demand of local enterprises will increase in the last months of this year, said Bien Hoa Sugar vice chairwoman Pham Thi Sum.
The company earlier obtained a license to import 25,000 tons of sugar. However, as of early this week it had imported only 5,000 tons from Thailand as sugar stockpiles in Thailand and other ASEAN nations are running low.
“Bien Hoa cannot complete the import quota set by the Ministry of Industry and Trade as the import tax applicable to crude sugar from outside the ASEAN region ranges from 30% to 40%,” Sum added.
The enterprise has also sought approval for importing refined sugar to meet demand of domestic firms.
The ministry early this year fixed a sugar import quota at 200,000 tons as Vietnam turned out nearly 890,000 tons in the 2009-2010 crop, or 20,000 tons lower than the previous crop. The ministry then allowed for the import of 100,000 tons more this month.
For the extra quota, Bien Hoa is responsible for importing 25,000 tons and other confectionery and beverage firms can import 50,000 tons. The ministry has set aside the remaining volume of 25,000 tons to stabilize local sugar prices.
