Vietnam: Petrol Tax Import Reduced by 5%
|
|
|
|
Monday, 26 January 2009 |
|
The Government has decided to decrease preferential tax rates on
imported petroleum from 40 to 35 percent. The new rate will be applied
to imported petrol from January 24.
The Ministry of Finance (MoF) issued Circular No15/2009/TT-BTC on January 22 as an implementation guide for the new tax level for items belonging to group 2710 on the General Department of Taxation’s import list.
Under the circular, import taxes on some items, mostly leaded and non-leaded petrol, petrol for airplanes, naptha and reformatic petrol will drop to 35 percent.
The move to reduce taxes was made to support petrol importers at a time when world oil prices are slowly increasing. According to the MoF, the tax cut was based on the stability of current global oil prices. Petrol importers make net profits of 3-4 percent when imported petrol prices are US$40 per barrel. In early December last year, the MoF and the Ministry of Industry and Trade decided to cut retail petrol prices by VND1,000 per litre nationwide, and increased the petrol import tax to 40 percent, replacing the older level of 35 percent.
PetrolWorld 240109 Source: VOV
|
