The Ministry of Finance has approved a proposal to cut/exempt the import taxes of some petroleum product starting Tuesday.

Photo: Tuoi Tre

Accordingly, jet fuel and gasoline for vehicles will enjoy a zero tax rate from the previous 4 percent, said Circular No.25 issued by the ministry.

The tax rate for kerosene and diesels for vehicles and machines will go down 2 percent to 3 percent.

The decision comes out to ease the constraints of fuel importers since fuel prices in Singapore, the main import source of Vietnam, have surged 0.89 – 5.18 percent since the middle of last month, said the ministry.

The price of A92 premium gasoline and oil has recently peaked $129.35 a barrel and $130 a barrel.

Fuel wholesalers/importers, consequently, late last month sought for the price hike decision from the ministry, claiming that the more they sell, the heavier their losses, around VND1,000 per liter sold, mount.

The Ministry on December 28 raised the tariff of jet fuel and gasoline for vehicles from 0 percent to 4 percent, while maintaining the tax rates for other petroleum products, such as oil and grease, lubricating oil for aircraft engines, oil and other lubricating oils used in hydraulic brake (brake fluid), at 3-15 percent.

Dang Vinh Sang, General Manager of Saigon Petro, told newswire VnExpress the tax reduction is not really a helpful way to remove difficulties for fuel enterprises.

It is more important that the Ministry of Finance needs to adjust local fuel prices following world trend.

Source: Tuoitrenews