Fuel import taxes lifted to 5 percent

Hanoi (VNA) - The Ministry of Finance announced that it would impose a 5 percent tax on imported petroleum to offset State subsidies, as world oil prices hover around 100 USD a barrel.

The new tax will take effect on September 15, according to a decision
signed by the deputy finance minister Do Hoang Anh Tuan on September 11.

Under the decision, all petroleum used for engines such as leaded and
unleaded petroleum, aviation fuel, solven, naphtha, reformate, crude oil,
and others will have their import tax rate increased from the current rate
of zero.

The decision is no surprise to local fuel importers because the tax
increase was mentioned at a press conference on August 28 by another deputy
finance minister Do Xuan Ha, who said that when world oil prices decreased
to below 110 USD a barrel, the ministry would consider removing the tax, but
not decrease retail prices in the domestic market.

Local fuel importers lost more than 14,000 trillion VND (850 million USD)
in the first six months of this year because of the difference between
international fuel prices and domestic retail prices set by the Government.
The Government said it would cover all the losses.

Light and sweet crude for October rose 55 cents USD to 101.42 USD a barrel
on the New York Mercantile Exchange on September 12.-