Vietnam scraps import tax on tanned hides
18/03/2008
Reports from Vietnam suggest the finance ministry there has taken the decision to remove import tax on the tanned hides and skins of goats, pigs and reptiles. The tax-rate previously was 3%.
The tariff on raw hides—already at zero—has remained unchanged. Tax on finished leather from the same animal groups stands at between 3% and 5%.
Commentators in Asia have suggested this is a further measure on the part of the Vietnamese authorities to maintain growth in the footwear manufacturing sector.
Vietnam gained US$769 million from exporting footwear, including leather shoes in the first two months of this year, seeing a year-on-year increase of 25.3%, according to the Vietnam Leather and Footwear Association.
The country has planned to increase footwear export revenues to US$6.5 billion in 2010.
There are anti-dumping measures in place in the European Union against imports of leather shoes from Vietnam, but these are due to come to an end on 7 October this year.
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