There are some outstanding features in the 2018 special preferential import tax. The decrees outline the special preferential import tax rates Vietnam will provide its partners and include detailed tables naming the eligible goods categories.
The ten decrees are effective from January 1, 2018 and are applicable over the 2018-2022 period, with decrees 155 and 160 being applicable during 2018-2023.
3,720 tax lines under are going to be removed, including milk, chemicals, paper, iron and steel, machines and devices, among others.
Pursuant to AIFTA, 59% of tax lines will be cut in 2018 (equivalent to 5,668 lines) focusing on processed meat, fishery products, vegetables, and fruits.
According to a vietnamnet article, evaluating the effects of the tax cuts, Pham Tuan Anh confirmed: “It will have a remarkable impact on the price of goods this year. However, almost all FTAs are in the final stages of implementation and the value reduction is not as much as before, so the impacts will not be as sharp.”
For the list of decrees detailing Vietnam's new import tax policies, click here