Petrol import tax cut to 17%

In an effort to help petrol dealers stabilise prices, the Ministry of Finance (MoF) has decided to reduce petrol import tax rates from 20 per cent to 17 per cent beginning today, April 21.

Diesel oil and kerosene, which were previously taxed at 15 per cent, will now be subject to a reduced tax rate of 10 per cent.

MoF adopted this solution to share in the businesses losses that have resulted from increased world petrol and oil prices.

Prices had reached US$90 per barrel of petrol and $93 per barrel of diesel oil on the Singapore market on Monday.

The reduction also follows the Government’s decision to extend the period of time when retail petrol prices will rise to the end of June.

MoF added that with the rising import prices, petrol firms have lost VND1,100 ($0.06) per litre of petrol.

Petrol dealers received approximately VND500 billion ($26.3 million) from the petrol price stabilisation fund in compensation for their losses since the beginning of this month.

However, the money has not helped them fully avoid loss, according to MoF.

The ministry said it is unable to raise retail prices at this time because it could result in a domino effect, with prices for other necessities also going up. It added that it would apply other administrative measures if the world petrol price continues to rise and domestic firms suffer bigger losses.

Viet Nam News

Tags: Vietnam petrol, Vietnam petrol import tax