Consider reducing more taxes to control gasoline prices

At the Government’s regular press conference, on the afternoon of May 4, answering questions from the press about solutions to curb gasoline prices, Deputy Minister of Industry and Trade Do Thang Hai shared his difficulties with people and businesses. industry using petroleum for production and daily life.

Deputy Minister of Industry and Trade Do Thang Hai

In order to curb the increase in gasoline prices, according to Mr. Hai, first of all, it is necessary to use the flexible Petroleum Price Stabilization Fund to limit fluctuations in domestic gasoline prices compared to world prices, to control inflation and restore the economy. Thanks to the stabilization fund, compared with the average price of some petroleum products in Singapore, the domestic increase is lower.

Secondly, according to Mr. Hai, adjustment of taxes and fees in the petrol and oil structure, such as environmental protection tax, excise tax and import tax. In which, the environmental protection tax has recently been reduced by 50% from April 1 for gasoline, diesel and 70% of tax for kerosene.

“In the coming time, the Ministry of Industry and Trade will coordinate with the Ministry of Finance to continue to review and further reduce taxes in the petrol price structure,” Mr. Hai said.

However, according to Mr. Hai, if gasoline prices want to adjust, if they want to reduce the increase in gasoline prices, it is not only the inter-ministerial responsibility but also the responsibility of other ministries and sectors, such as having to propose policies on welfare and support for the poor, because the price of petrol is high. The increase in oil and gas will have a great impact on the production of enterprises.

Deputy Minister of Finance Ta Anh Tuan

Adding more information, Mr. Ta Anh Tuan, Deputy Finance Minister, said that the average proportion of tax in petrol prices in many countries (except countries with large oil reserves) is 40-60%. For Vietnam, the proportion of tax in gasoline price is 29-31%; diesel more than 13%. Thus, the proportion of tax in petroleum in Vietnam is on average low compared to the world.

The world petrol price has increased, Mr. Tuan said, “we are also worried because this product affects CPI, challenges in management, and controls inflation”.

In the current context of high gasoline prices, the Ministry of Finance consults with ministries and branches to amend the Decree on import and export tax rates and preferential import tax rates, in which to adjust the preferential import tax rates to gasoline from 20% to 12%. This will diversify the supply of petroleum.

Regarding the reduction of excise tax and VAT, according to Mr. Tuan, there are no provisions on tax exemption or reduction for goods subject to excise tax, according to Mr. Tuan. On the other hand, the excise tax on gasoline in Vietnam is currently low compared to the world.