Deputy Minister of Finance: Vietnam’s petrol tax is at an average low level
Regarding the issue of gasoline prices, at the May Government’s regular press conference this afternoon (June 4), Deputy Minister of Finance Ta Anh Tuan said the tax policies we are applying with Petrol currently includes: import tax, special consumption tax on gasoline, environmental protection tax and value added tax. These taxes ensure compliance with common practices around the world.
According to Mr. Tuan, on average, in the world, the tax proportion in petrol prices accounts for about 45-60% (except for countries with large oil reserves). In Vietnam, after the policy on tax reduction, the tax rate for gasoline is about 29-31%, and for diesel about 13.3%. Taxes and fees are not regulated to be collected on petrol and oil.
“Thus, it can be seen that the tax on gasoline in Vietnam is on average low compared to the world”, Mr. Tuan emphasized.
Deputy Minister of Finance Ta Anh Tuan
Regarding the environmental protection tax, the Deputy Minister of Finance said that in 2021-2022, in order to support airlines to recover, we have reduced 50% of the environmental protection tax on jet fuel. The Ministry of Finance has also reported to the Government to submit to the National Assembly for approval a Resolution on environmental protection tax on petrol and oil with a reduction of 50-70% to support the reduction of petrol and oil prices.
Currently, in the context of high gasoline and oil prices, on April 21, the Ministry of Finance consulted ministries and branches to report to the Government on the import and export schedule, the preferential import tariff, including the Export and import will reduce the preferential import tax rate for gasoline from 20% to 12% in order to diversify petroleum sources.
“As for excise tax and value added tax, there are no provisions on tax exemption or reduction for goods subject to excise tax. On the other hand, our current excise tax on gasoline is also at a low level in the world,” Mr. Tuan informed.
3 solutions to curb gasoline prices
Also related to the issue of petroleum, Deputy Minister of Industry and Trade Do Thang Hai said that over the past time, gasoline prices have increased continuously, increasing at a high level, causing difficulties for people using petrol and oil for service. for life, for life. This also makes it difficult for businesses to use petroleum as input for production and business activities.
According to the Ministry of Industry and Trade, Government leaders are very interested, often directing two contents on petrol and oil. The contents for gasoline, including ensuring the supply of petrol and oil for daily life and the evolution of petrol prices, are also concerned by the Government’s leaders.
The Ministry of Industry and Trade has coordinated with the Ministry of Finance to consistently comply with the provisions of Decree 83 and Decree 95 on regulating domestic gasoline prices in line with the development of world petroleum. However, this needs to bring about the most favorable conditions possible for people as well as businesses.
Mr. Do Thang Hai said that in the past time as well as in the future, there are 3 measures that need to be taken into account in order to reduce and control to the maximum extent with the increasing price of gasoline.
In particular, it is necessary to use the tool of the Price Stabilization Fund effectively and flexibly in order to limit the sharp fluctuations of domestic gasoline prices compared to fluctuations in world prices. This also contributes to achieving the goal of controlling inflation and supporting the economic recovery.
Deputy Minister of Industry and Trade Do Thang Hai said that although gasoline prices have increased continuously and are at a high level, Vietnam’s gasoline prices are still lower than those of bordering countries such as Laos and 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 increased by 45.86% – 63.68%. increased only 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.
Deputy Minister of Industry and Trade Do Thang Hai said that although gasoline prices have increased continuously and are at a high level, Vietnam’s gasoline prices are still lower than those of bordering countries such as Laos and Cambodia. and China
The second solution is to adjust taxes and fees in the petrol structure. The Ministry of Industry and Trade proposed to propose, the Ministry of Finance reported to the Government and was allowed by the National Assembly to reduce the environmental protection tax rate by 50% for gasoline and 70% for kerosene from April 1 to December 31, 2022.
“In the coming time, we will coordinate with ministries and sectors, especially the Ministry of Finance, to review and propose to reduce taxes related to petrol price structure within the allowable extent.” Mr. Hai said.
The third solution that Mr. Hai mentioned is that we need to work towards measures, such as proposing policies to support people and businesses in the context of a sharp increase in petrol prices.
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