On January 12, the Ministry of Industry and Trade (MOIT) released Decision 63 on revoking a certificate to act as a major petroleum distributor on Hai Ha Waterway Transport Company.

HaiHa still owes VND1.7 trillion in tax. In 2021, the company owed VND815 billion and in 2020 it owed VND761 billion.

Nam SongHau Trading Investing Petroleum JSC has also been named as a big tax debtor.

The Hau Giang Tax Department issued a decision on tax enforcement by stopping the use of company’s invoices as Nam Song Hau owed VND1 trillion in tax for more than 90 days. 

In late December 2023, the Nghe An Taxation Department released a notice on suspending the Thien Minh Duc Group president because the enterprise owed VND728 billion worth of tax.

Prior to that, XuyenViet Oil was reported owing VND1.528 trillion tax debts, including VND1.244 trillion worth of environmental protection tax.

According to the General Department of Taxation (GDT), the unpaid environmental tax debts had reached VND6.323 trillion as of October 31, 2022. 

By September 30, 2022, six out of 15 inspected major merchants owed VND3.219 trillion worth of tax debts.

In November 2023, GDT requested local taxation agencies to take drastic measures to force petroleum distributors to pay tax debts.

Explaining the tardiness in tax payments, Nam Song Hau said it had to sell petroleum products at a loss, which meant that its selling prices were lower than cost prices.

In 2022, petroleum prices increased sharply in the world market, while the company was asked to ensure sufficient supply of petroleum products for the Mekong Delta (more than 1 million tons). Also, it was asked to share its supply with distributors in other localities .

The company took a big loss of VND236 billion in 2022.

At that time, while retail agents had to accept the discount rate of zero percent, the company had to increase the discount rates for its 500 agents from VND200 to VND400 per liter.

Giang Chan Tay, director of Boi Ngoc Co Ltd, said nearly all petroleum companies have tax debts, because the policies are unreasonable and out of date.

He said many small companies don’t have tax debts, but have big bank debts. This is because the companies have to borrow money from banks to fulfill tax obligations.

GDT Deputy director general Mai Son said 10 out of 34 major petroleum distributors have not paid the environmental protection tax. 

Luong Bang