Vietnam locates in group of low petrol price countries

Vietnam’s retail petrol price is lower than neighboring countries and many ASEAN nations, said head of Tax Policy Department Pham Dinh Thi yesterday afternoon referring to a proposal to increase environmental protection tax rate.


Vietnam’s petrol prices have been lower than neighboring countries and many ASEAN nations (Photo: SGGP)

He was speaking at a quarterly conference by the Ministry of Finance.

Quoting data from website Global Petrol Prices on April 3, he said that Vietnam’s retail petrol price was in low group, ranked 44th out of 180 nations from low to high rank.

According to him, the price in 136 countries is higher than in Vietnam. Of these the Philippines was ranked 55th, Cambodia 58th, Thailand 88th and Laos 97th.

The ratio of taxes to basic price in Vietnam is lower than many countries, accounting for 37.24 percent on gasoline, 21.14 percent on diesel, 11.5 percent on kerosene and 18.4 percent on mazut. The taxes comprise import tariff, special consumption tax, environmental protection and value added tax.

Fuel tax in South Korea is imposed at 70.3 percent, Cambodia 40 percent and Laos 56 percent.

At the meeting, Mr. Thi talked about the Ministry of Finance’s proposal to increase environmental protection tax frame from VND1,000-4,000 to VND3,000-8,000 a liter of gasoline.

The proposal aimed at coping with complicated changes in the world’s petrol prices, ensure national benefits when Vietnam cuts import tariff to implement international commitments, prevent a big difference in petrol price between Vietnam and adjacent countries, improve responsibility to protect environment and encourage production and use of environmentally friendly goods, said him.

In the draft revised law on environmental protection, the Ministry of Finance just proposes to adjust tax frame on gasoline, basing on estimation of specific impacts to businesses’ production and trading, retail prices, citizens’ lives and socioeconomic situation in the current phase.
 
The Government will submit the draft law to the standing committee of the National Assembly to decide specific environmental tax rate on gasoline, he revealed.
 
The State Budget Law stipulates that environmental protection tax is a budget revenue source spent on development investment and capital assistance for businesses, says Mr. Thi.
 
At present, the state budget expenditure on environmental protection is maintained at 1 percent of total revenue. Authorized agencies are striving to increase the rate to 2 percent.

By Ngoc Quang – Translated by Hai Mien

Other news

Most view

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18 (Photo: VNA)

VN-Index rises over 21 points

The VN-Index of the Ho Chi Minh Stock Exchange (HoSE) rose 21.12 points on July 18, with 223.9 million shares worth over 4.9 trillion VND (211 million USD) traded. 

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

185 leading domestic & in't enterprises join in VN ETE 2018

The Vietnam Exhibition of Electrical Technology and Equipment (Vietnam ETE 2018) and the Exhibition of Products, Technologies for Energy Saving and Green Power (ENERTEC EXPO 2018) yesterday kicked off in HCMC’s Saigon Exhibition Convention Center in district 7.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

SAS profits VND 118bln

The Southern Airports Service Joint Stock Company (Sasco) which is listed under code SAS on the Unlisted Public Company Market (UPCoM), announced its second quarter’s financial report with net revenue at VND 634.5billion, an increase of 14 percent compared to last year.