Ministry of Finance proposes to reduce import tax on petrol and oil to 12%

According to Deputy Minister of Finance Ta Anh Tuan, on April 21, the Ministry of Finance consulted ministries and branches to report to the Government for a proposal to reduce preferential import and export tax (MFN) for gasoline engine. leaded from 20% to 12% to contribute to reducing the cost of importing gasoline and diversifying petroleum supply in the context of high domestic gasoline prices.

The Ministry of Finance proposes to reduce petroleum import tax to 12% - 1

Deputy Minister of Finance Ta Anh Tuan. (Photo: Dac Huy)

According to a representative of the Ministry of Finance, currently we apply petroleum taxes including import tax, excise tax on gasoline, environmental protection tax and value added tax (VAT). These taxes ensure compliance with common practices in the world. In the world, the proportion of tax in the price of gasoline accounts for 50-60%, except for countries with large oil reserves. After we have some policies on tax reduction, the tax rate for gasoline is from 29-31%, for diesel is about 13.3% and there is no regulation to collect fees and charges for gasoline. “Thus, our gasoline tax rate is relatively low compared to the world“, Mr. Tuan commented.

According to Mr. Tuan, in the past time, the reason for the high gasoline prices is because countries recovered from the COVID-19 pandemic and the Russia-Ukraine military conflict… Faced with this “hot” issue, the Government and agencies Ministries and sectors, including the Ministry of Finance, is a standing agency that is very worried about the impact of petrol prices on the CPI and is a big challenge for 2022.

Therefore, from the proposal of the ministries, branches and the Government, the National Assembly has reduced the environmental protection tax with jet fuel to support airlines by 50% and reduced the environmental protection tax from 50-70% with gasoline, oil, grease.

Also answering about gasoline prices at the meeting, Deputy Minister of Industry and Trade Do Thang Hai said that although petrol prices have increased continuously and are at a high level, Vietnam’s gasoline prices are still lower than those of Vietnam. bordering countries such as Laos, Cambodia and China.

In addition, from the beginning of the year to June 1 (the latest operating period), while the average price of some petroleum products in the world on the Singapore market increased by 45.86%-63.68%, the domestic price only increased 27.29% – 47.89%. Thus, although operating according to the increasing momentum of the world, the increase in gasoline prices in Vietnam is still lower.

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