Vietnam's Finance Ministry has abolished an export tax on rice which was brought into law in July of this year, it was announced on December 24.
The decision to remove the duty entirely was made on December 19, just five months after its introduction on July 21.
The main reason behind the scrapping of the tax has been cited as its failure to succeed in a market where exports of rice have fallen below the taxable level.
The tax was first proposed in May of this year as a measure which would help increase domestic supplies after rice prices trebled to previously unseen heights of VND17m (USD1,000) per tonne.
The dramatic falls in the price of rice during the second half of the year caused exports to fall below the tax threshold, rendering the tax useless.
At present, Vietnam is the second-largest exporter of rice throughout the world, and has shipped around 4.5 million tonnes worth of the popular food product to other countries this year alone.
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