Vietnam reviews mining tax

Vietnamese finance ministers are reviewing the country’s taxation of producers of minerals and metals, natural gas, coal and gemstones.

According to a report by news agency, Reuters, sharp increases in taxes are being proposed in efforts to protect the environment and prevent unauthorised mining.

A hike in the country’s natural resource tax could also bolster the provincial budgets that are used to make environmental improvements.

According to Reuters, the Vietnamese Finance Ministry is considering raising taxes on mining manganese, steel, lead, zinc and copper to between 10% and 30%. Revenue is currently collected at between 1% and 5%.

A consultation is taking place with the relevant authorities and responses are expected by the end of August, after which a plan will be submitted to the government.

Vietnam’s main export customers are in China and Japan but the country’s economy is experiencing strong growth and the government has limited export of certain commodities as a result.

In 2007, revenues from Vietnam’s natural resource tax fell by 7.6%.