Vietnam Petroleum Taxes, Fees Double against U.S

Taxes and fees account for 35% of the current gasoline prices and nearly 30% of oil products in Vietnam, which are double against those in the U.S..

Consumers in the U.S. are paying only $47 U.S. cents/gallon or VND2,360/liter of gasoline, representing 16.18% of gasoline price at $2.905/gallon or VND14,580/liter; and taxes account for between 17% and 18% of diesel prices, the U.S. Retail Gasoline Prices.

Meanwhile, with the current gasoline A92 price of VND16,990/liter, Vietnamese consumers are paying 17.3% import tariff, a 10% excise tax, a 10% valued added tax, and transport fee of VND1,000/liter; and contributing VND300/liter to the petroleum price stabilization fund. Tariffs on oil products range from 10.5% to 15.5% regardless of other taxes and fees.

The U.S. Department of Transportation said 60% of the gasoline taxes are used to build bridges and avenues and the rest of 40% for other programs, up to 94% of capital used for road maintenance in the country come from fuel taxes, and capital allocation for road projects in states and other localities reaches 86.3% and 11.15%, respectively.

In contrast, Vietnamese authorities are mulling over charging an additional VND1,000 per liter of consumed gasoline for a road maintenance fund, putting more burdens to consumers.

Once established, the fund is expected to collect as many as VND5.92 trillion ($311.579 million) per year, which could meet 82% of capital demand for the country’s national highway maintenance and 41% for roads in localities nationwide because the national state budget can only meet 50%-60% of the capital demand for road maintenance.

Currently, a liter of gasoline A92 is sold at VND16,990, gasoline A95 at VND17,490, diesel 0.25S VND14,550, diesel 0.05S VND14,600 and kerosene VND15,000, Meanwhile, prices of fuel oil 3S is VND13,300/kg and fuel oil 3.5S VND13,000/kg.

Nguoilaodong

Tags: Vietnam Petroleum Taxes