Special consumption taxes on gasoline to stay in place: MoF

October, 11/2022 - 14:40
Việt Nam's special consumption taxes on gasoline remains at 10 per cent (8 per cent for E5 and 7 per cent for E10). 

 

A petrol station in downtown Hà Nội. — VNA/VNS Photo

HÀ NỘI — The Ministry of Finance said it does not support removing current special consumption taxes on petroleum in response to recent calls to drop taxes from the Vietnam Chamber of Commerce and Industry. 

Petrol use should remain conservative according to the ministry's proposal to the National Assembly, citing similar taxes worldwide.

The ministry cited France's 0.6829 euro per litre, Germany's 0.3545 euro per litre and Italy's 0.4784 euro per litre. Similarly, South Korea, Australia, Singapore, China, Laos and Cambodia also maintains fuel taxes ranging from 15 per cent to 16 per cent. 

Việt Nam's special consumption taxes on gasoline remains at 10 per cent (8 per cent for E5 and 7 per cent for E10). 

"Việt Nam's current special consumption taxes can be considered as mid to low, especially in comparison to neighbouring countries such as Laos and Cambodia," said a ministry spokesperson. 

Meanwhile, the ministry said it supported other measures to bring down fuel prices, including a 50 per cent reduction of special consumption taxes on gasoline (E5 and E10 included), up to a 50 per cent reduction of VAT on diesel, kerosene oil and Mazut oil. 

However, how much of a reduction in special consumption taxes on fuel is a matter for the NA's Standing Committee to decide, according to the ministry. 

In March, fossil prices in the Southeast Asian country earlier hit a record high at over VNĐ30,000 (US$1.256) per litre. However, prices have since come down after several fees and tax cuts to around VNĐ20,000 per litre.

However, economists predict that fuel prices will likely rise again, at least in the short term, after a recent OPEC+ decision to cut output by two million barrels daily. —VNS

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