Vietnam Coal and Minerals Group or Vinacomin reported that the costs for mining coal has increased while the global price of coal exports has reduced dramatically since July 2006.
Vinacomin therefore proposed the finance ministry and relevant bodies to approve the coal-selling price according to the price list which the group submitted in September 2005. Accordingly, the price of selling coal to electricity sector will rise by 25%, to the cement industry up by 44%, paper sector up 41% and the fertiliser sector will increase 50%.
Responding the proposal of Vinacomin, a financial specialist said that last year Vinacomin earned about four trillion dong (mostly from coal production and trading) on the total fixed assets of about five trillion dong. At present, the tariff on clean coal export is 0% while other mineral types are imposed a high tariff. Therefore, the Ministry of Finance will consider export tax, value added tax (VAT) on coal export so that the state’s budget will not suffer any deficit as coal producers ask to hike coal selling price.