TKV (Vietnam Coal Corporation) has again proposed reducing the export tax on coal.

Just two months after the new export tax was increased from 10% to 13%, coal exports decreased by 2 million tons, a drop of 1 million tons per month compared to the six-month average.



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During a recent meeting with Deputy Prime Minister Hoang Trung Hai, Tran Xuan Hoa, Chairman of the Vietnam Coal and Mineral Corporation (TKV), proposed that the State should soon consider adjusting the coal export tax policy back to the previous level of 10%.

According to Mr. Hoa, the implementation of this tax policy will lead to a projected total coal consumption of 36-37 million tons for the whole year of 2013, a decrease of 20 million tons compared to 2012. However, TKV (Vietnam Coal and Mineral Group) will still maintain its mining plan at 39 million tons, accepting an increase in inventory levels of more than 2 million tons compared to the plan.

Mr. Hoa also stated that although domestic coal prices have been adjusted twice in 2013, most recently on August 1st, to match the 2013 production cost, in the long run, they still need to be further adjusted to closely reflect market prices to meet the financial resources needed for the industry's development.

According to Mr. Le Duong Quang, Deputy Minister of Industry and Trade, the recent 3% increase in coal export tax is inappropriate, especially given the current difficulties in the consumer market. This tax increase also results in revenue losses for the State budget due to unsold coal and will impact the industry's production growth in the coming years.

Previously, at the online production management meeting in August, held on August 6, 2013, TKV also stated that, due to the lowest sales volume in July so far this year, the Group's financial balance continues to face many difficulties.

Total revenue of TKV (Vietnam Coal and Mineral Group) up to the end of July was VND 54,747 billion, of which coal production revenue reached VND 31,500 billion, mineral revenue reached VND 2,188 billion, and industrial explosives revenue reached VND 2,110 billion.

According to baocongthuong.PH