return icon Vietnamnet.vn

State budget faces $1.4 billion drop from fuel tax cuts

Measures taken to bring down petrol prices could reduce State budget collection by VND32.5 trillion (US$1.4 billion) this year, according to deputy minister of finance Nguyen Duc Chi.
A driver in Hanoi fills up a motorbike at a gas station. VNA/VNS Photo

Speaking to reporters at the ministry's monthly meeting, Chi said the Ministry of Finance has put forward a proposal to cut or remove a number of fees and taxes on fuel imports in an attempt to rein in rising petrol prices, which has been hurting economic recovery and businesses.

The proposal, which has been approved by the National Assembly's Standing Committee, brought import tax on gasoline from VND2,000 to VND1,000, jet fuel from VND1,500 to VND1,000, diesel from VND1,000 to VND500 and lubricant from VND,000 to VND300.

Chairman of the NA Vuong Dinh Hue said as fuel was considered among the country's strategic commodities the government was to utilise all measures and policies at its disposal to regulate prices for the benefit of economic recovery and stability. 

The deputy minister said if implemented from August, the cuts would likely result in a VND7 trillion (US$302 million) drop in the State budget. Combined with previous cuts under decisions by the NA's Standing Committee since the beginning of the year, the State budget collection, by the ministry’s estimation, will fall by $1.4 billion in 2022.

As global oil prices continue to rise, Vietnam’s oil export was said to increase by VND9 trillion this year, which helps offset the drop in State budget collection after the tax cuts.

“We have also been looking into other ways to help bring down domestic petrol prices including possible import tax breaks, VAT and special consumption tax cuts,” said the deputy minister.

For the time being, the ministry is to closely watch global and domestic petrol prices to make sure timely interventions can be implemented to best support the country’s socio-economic development.

Bui Ngoc Bao, president of the Vietnam Petroleum Association (VINPA), called on the ministry to reduce the country’s current most-favoured-nation tariff from 10 per cent to 8 per cent for a fixed period of time and to tighten regulations on fuel trading.

In a recent online conference with local governments, Prime Minister Pham Minh Chinh told governmental offices and ministries all policy and fiscal tools were made available to policymakers in order to bring down Vietnam’s petrol prices. However, he said the implementation must be carried out step-by-step to ensure fuel traders receive the best possible support.

Since the beginning of the year, fuel prices in Vietnam have increased 13 times, bringing fuel prices to a historically high level with RON 95-III gasoline (the most commonly used type in the country) to VND32,760 per litre, E5 RON 92 to VND30,890 and diesel to VND29,610 per litre, nearly 50 per cent higher than January 2022. 

Source: Vietnam News

MORE NEWS

U.S. recommends adding birthplace info to Vietnam’s new passport

The U.S. is still reviewing Vietnam’s new passport and has asked visa applicants to submit their birthplace information.

VIETNAM NEWS HEADLINES AUGUST 13

Vietnam logs 1,815 new coronavirus cases on August 13

VIETNAM BUSINESS NEWS AUGUST 13

Vietnamese firm reaches first partnership deal to develop eSports in Cambodia

Power shortage worries increase hunger for coal

Vietnam is maximising its coal mining output amid widespread power outages in the north.

Indicators ripe for wave of tech startup successes

Venture capital investment flows into Vietnam, particularly from Singapore, are on track to surpass the previous level, propelled by the country’s buoyant tech startup scene.

Tourism industry faces serious labor shortage

Because of low pay, many workers have left the tourism sector.

Industrial parks, economic zones absorb US$ 230 billion in foreign direct investment

Industrial parks (IPs) and economic zones (EZs) across the country have attracted nearly 11,000 foreign direct investment projects worth US$230 billion, according to Deputy Minister of Planning and Investment Tran Quoc Phuong.

Property, fishery sectors face hardship as credit chokes

At a government-to-business conference held yesterday, representatives of business associations expressed their concern over being unable to access bank loans as banks are running out of credit growth quotas.

Utilising every opportunity to grow and overcome challenges

That is the message and guideline of Minister of Planning and Investment Nguyen Chi Dung at the national conference on how to sustainably develop.

Outbound tours to Europe rocked by passport tangle

A number of Vietnamese outbound travel companies have already been affected by the decision of some European nations to not recognise Vietnam’s new passports.

Huynh Nguyen Mai Phuong becomes Miss World Vietnam 2022

Huynh Nguyen Mai Phuong was crowned Miss World Vietnam 2022 after surpassing 36 competitors at the finale held at MerryLand Quy Nhon in the south-central province of Binh Dinh on August 12.

Young people discover the universe via telescopes

Many young people have been spending time and money to buy telescopes and build rooftop observatories to admire the wonders of the universe.

Ample room remains for Vietnam’s exports to EU

There is still a lot of room for Vietnamese goods to expand their presence in the European Union (EU) market, but accessing its retail distribution systems is extremely important, heard a seminar in Ho Chi Minh City on August 11.

Vietnam yet rolls out Covid jabs for under-5s

Vietnam has yet planned to get younger kids aged under five vaccinated against COVID-19, according to the Ministry of Health (MoH).
back_to_top