Agree to exempt farmed python skins from export tax.

The government also instructed the Ministry of Finance to provide specific implementation guidelines for businesses and livestock farmers.

The Prime Minister has issued Official Letter No. 4013/VPCP-KTTH agreeing to the proposal to exempt export tax on farmed python skins and assigning the Ministry of Finance to provide specific guidance on its implementation.

According to a document from the Ministry of Finance reporting to the Prime Minister on the proposal to exempt export tax for 9 farms and businesses breeding and exporting python skins in Cu Chi district, Ho Chi Minh City, for many years, the successful breeding of various python species, including black pythons and yellow pythons, has brought great benefits to households and python breeding facilities in Southern Vietnam, creating jobs and utilizing surplus food from nature.

Python skins are primarily exported to earn foreign currency and comply with national and international regulations. The imposition of a 5% export tax on python skins has significantly impacted the breeding and export of python skins, while python breeders face considerable difficulties due to a lack of access to preferential loan sources.

The Ministry of Finance also stated that information regarding Vietnam's python farming industry for export shows that, generally, the scale is not large, limited to household farms with on-site processing facilities or partnerships between multiple farms and households, but there are no processing plants yet.

From 2011 to the present, this industry has also been affected by the domestic and global economic crisis, with demand and export prices of raw python skin decreasing. The average export price of raw python skin from Vietnam in 2009 was 27.7 USD/piece, falling to 19.8 USD/piece in 2011; meanwhile, the price of animal feed doubled in 2011 compared to 2010, and increased by about 17% in 2012 compared to 2011.

In 2012, the export value of python skins was only about 55.17% compared to 2011. Currently, the amount of python skins remaining in stock at farmers' households is estimated at 14,000 to 15,000 pieces, and the production from python farming in 2012 was only about 60% compared to 2011. The python skin products currently exported from Vietnam are determined to be legally compliant with the CITES Convention regarding the farming of pythons for their skins in Vietnam.

Based on this situation, the Ministry of Finance noted that python farmers are facing significant difficulties regarding capital, export markets, and shrinking farming scales. Furthermore, the python farming and skin processing project is not eligible for state investment loans.

The current export tax rate of 5% on raw animal hides, including python skins, is the minimum rate stipulated in the Export Tax Framework by the Standing Committee of the National Assembly in Resolution No. 295/2007/NQ-UBTVQH12 dated September 28, 2007, and therefore cannot be reduced to 0% as requested by the farm owners.

Therefore, according to the Ministry of Finance, in order to alleviate difficulties for python breeders, based on the authority stipulated in Clause 11, Article 16 of Law No. 45/2005/QH11 on Export and Import Taxes, it is possible to apply import tax exemption "for other specific cases as decided by the Prime Minister".

Before submitting the proposal to the Government, the Ministry of Finance also sent a document seeking opinions from relevant ministries and agencies. The opinions of the Ministries of Agriculture and Rural Development, Industry and Trade, and the State Bank of Vietnam were basically in agreement with the opinion of the Ministry of Finance.

According to (vov.vn) - LT