HA NOI (VNS)— The import tax of jet fuel has been slashed from 12 to 7 per cent as of yesterday, the Ministry of Finance has announced.
Together with the cut, the ministry will also review import taxes on the product the next time prices fluctuate in the world market.
Accordingly, the tax rate of 7 per cent will be imposed in cases when a barrel of jet fuel is priced at more than US$105 in the world market.
When the fuel price drops to $95-105 per barrel, the import tax will be 9 per cent. The tax will continuously rise to 20, 30 and 40 per cent when the fuel price declines to $85-95, $70-85 and under $70, respectively. The import tax will not exceed 40 per cent in any case.
The ministry expects the issuance to help jet fuel traders and airlines take the initiative when forming their business performance plans.
Besides the import tax, jet fuel is currently also levied with an environment protection tax of VND1,000 a litre and a value added tax (VAT) of 10 per cent.
Domestic airlines recently asked the finance ministry to suspend the collection of VAT and environment taxes on jet fuel if oil prices rise to $118 a barrel or more.
They claimed to be facing difficulty due to the economic slowdown and rising input costs.
However, the ministry rejected the proposal, saying that collecting VAT and environment protection tax was subject to the rules of the National Assembly's Standing Committee. Therefore, the involved companies are required to adhere to the tax payment in line with the law. — VNS