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It suggested increasing the tariff on pulp from zero to 5 percent and on paper imported from Southeast Asia, the country’s main supplier, from 3 percent to 5 percent.
It also suggested a cut in value-added tax for paper producers, who have been hit seriously by the global economic recession. The current VAT rate is 10 percent.
Paper prices have fallen sharply, seriously affecting domestic producers, the ministry said in a statement.
The Vietnam Pulp and Paper Association (VPPA) said the producers have had cut output by 20 to 40 percent since September but are still unable to cut their losses due to cheap imports from the Association of Southeast Asian Nations (ASEAN) and China.
VPPA said import prices have fallen 20-94 percent this year and estimated its members’ losses at VND1-3 billion (US$60,000-180,000) each this year.
(Source: VNA)Update from: http://english.vietnamnet.vn//biz/2008/12/820818/