Saturday, October 23, 2010

Vietnam to introduce plastic bag tax



Vietnam lawmakers Thursday discussed a draft environmental tax law following the bill the tax of VND50,000 to be levied on per kilogram of plastic bag.
The National Assembly Deputies also debated which products to be taxed, who to be taxable and what to be the appropriate tax rate.
The specific types of product should be taxed including peat, coal and anthracite instead of coal in general, and who must pay tax for small-scale exploitation.
The NA Standing Committee had agreed to apply environmental taxes on petrol and oil products.
Petrol and oil prices rely on the world market, the floor and ceiling rates should remain within perimeters , VND1,000-VND4,000 per liter under the draft law.
It’s because , a floor rate of VND1,000 (US$0.05) per liter now. To control a price hike if the rate gets higher, other taxes imposed on petrol and oil products will be adjusted.
Many National Assembly deputies also proposed tax increase with plastic bags because of widespread use of plastic bags has alarmingly, affecting the environment.
Most of the deputies agreed with the report, saying that the law's ultimate aim was to protect the environment and restrict the use of products that caused pollution.
Measures had already been taken to limit the use of plastic bags but a tax wouldn't be feasible as there was no replacement
On the same day, NA deputies discussed proposals to amend and revise some articles of the Law on Insurance Business, which came into effect in April 2001.
The amendments were designed to fit with Vietnam's commitments to World Trade Organization regulations and spur the stable development of the insurance market.
Many deputies said that the current insurance market’s competition was unhealthy, many insurance businesses violate the law, in collusion with the agent to pay commission of 50 percent, leading to poor quality of services.
Deputies Nguyen Viet Dung from Ho Chi Minh City specific regulations should be prescribed in the law to handle violators, creating a healthy market.
Concerning the domestic insurer who may lost their ground, General Secretary Nong Duc Manh on behalf of northern Thai Nguyen Province said that amendments and supplements in accordance with WTO commitments were needed, however, the insure would face a fierce competition from foreign insurance providers, "whether we can afford, so what kind of mechanism should be, how is open, how is appropriate.”
Deputies Nguyen Tan Quyen from Can Tho City said that developed countries had experienced in the field of insurance business, while this was a very sensitive area, so it comes with the schedule for implementation of WTO commitments should be binding sanctions, such as specific regulations for licensed insurance companies are foreign elements are how to share how reasonable.
Controlling the industry would help limit the loss of foreign currency and taxes.  Most of the deputies agreed to a regulation on compulsory reinsurance, which they said helped share risks and ensured the safety of enterprises.
The 12th National Assembly session, which is scheduled to last until November 27, is planned to pass nine laws and one resolution, and give suggestions on nine other draft laws.
The laws to be ratified in the session include those on Environment Protection Tax; Inspection (revised); Administrative Procedures; Civil Servants; and Consumer Right Protection.

The National Assembly deputies will aslo pass amendments and supplments to the Law on Minineral, the laws on Insurance Business, Securities, and the Election of NA Deputies and People's Council Memebers.
The deputies also hear the Government's report on Dung Quat Refinery and consider projects to be financed by government bonds.
The legislative body will aslo debate the Goverment's report on the implementation of socioeconomic tasks in 2010 and development plan in 2011.

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