Import Tax on Petrol Raised to 20%

The Ministry of Finance yesterday decided to raise the import tax on petroleum from 15 percent to 20 percent, to take immediate effect.

The new tax of 20 percent is imposed on unleaded petrol, leaded petrol, solvent, turbine fuel and lubricants. (Photo: T.C.)

Under the new decision signed by Deputy Minister of Finance Truong Chi Trung, the new tax of 20 percent is being imposed on unleaded petrol, leaded petrol, solvent, turbine fuel and lubricants.
 
On September 25, the ministry decided to raise the import tax on such petroleum products from 10 percent to 15 percent.
 
Since the world crude oil price has dropped from US$75 a barrel to just over US$60 a barrel, the Ministry of Finance increased the tax four times in increments of five percent at a time, from zero to the current 20 percent rate.
 
During the last two years, world petroleum prices have fluctuated drastically. Viet Nam has adjusted its retail petroleum prices in local markets many times.
 
Meanwhile, the Ministry of Finance and the Ministry of Trade last Friday reduced retail petrol prices, the second petrol price cut this year.
 
The retail prices of various kinds of petrol dropped at 9 pm last Friday by VND500 per liter. A92 petrol went down to VND10,500, while A90 and A83 petrol prices were respectively cut to VND10,300 and VND10,100.
 
The two ministries decided to maintain an unchanged retail price for oil products and to continue compensation for imports of such products.
 
Analysts said that at the current import price level, petrol importers can make a profit of VND700-1,000 per liter after tax and transportation fees.

Source: VNA

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