VPA's vice chairman Pham Trung Cang, said from the beginning his association's ideas contributing to the draft law had been ignored.
"The biggest problem is that manufacturers are all puzzled as the Ministry of Finance has yet to clarify which products will be levied with taxes and how they will be taxed," pointed out Cang
The new law, which slaps an absolute tax sum of either VND30,000 or VND40,000 on each kilo of plastic bags or plastic packaging products, has pushed local companies into extreme difficulties, or even to the verge of bankruptcy.
"Tax collection has pushed up input costs and prices and this has dampened local producers' competitiveness compared to foreign ones," Cang
noted a large number of foreign buyers having imported products from Vietnam had shifted to other neighboring exporters for lower prices, meaning the local plastic sector has been losing its large customers.
"If the environment tax aims at the plastic industry without any appropriate road map, it will deliver a deadly blow to industry players mired in the troubles," Cang
Local firms will suffer a huge loss which can eliminate the whole plastic industry's development, he