Vietnam: Due To Changes In Tax Policy, 90% Of DMC'S Border Duty Shops Have Been Closed Down.

Due to the change of tax policy, the duty-free shops on the border between Burma and Vietnam have been closed down. Some enterprises say that this regulation has a huge impact on their business and tries to sell products that are initially taxed.

Vietnam's Xining borders with Kampuchea. 90% of the 32 duty-free shops and supermarkets located at Moc Bai, the border gate of Xining Province, have recently been forced to close due to changes in the tax exemption policy.

According to the April 27th report, it was learned that: Vietnam Economic Development Zone According to the management committee, GC, the largest duty-free supermarket on the border, has recently announced that it plans to close in May 5th.

Pham Van Son, head of Vietnam's local management committee, said that the reason for these shops to close was due to changes in preferential policies and long-term operating losses.

For example, according to the regulations of Vietnam's Ministry of finance, customs products imported from the special economic zones on the border front have begun to pay taxes, for example. Import duties The tax paid on special consumption tax and value added tax depends on the type of product. The new regulation came into force in October last year.

In November 2013, the Vietnamese Prime Minister also signed such a decision: from January 2014, enterprises on the border gate will be prohibited from selling duty-free alcoholic beverages to tourists, including red wine and beer.

Some companies say this rule has a huge impact on their business. Some enterprises began to restrict imports of these products, and some tried to sell the products that were initially taxed in order to maintain their store operations.

The owner of the tax-free supermarket, GC, said in an interview that since Tax exemption policy After the change, there is still a total of $883 thousand worth of imported red wine in stock. It is hard to sell these products. In the first three months of this year, the company had lost 139 thousand dollars.