Gov`t reduces petrol import taxes by 10 percent

Hanoi (VNA) - The Government has cut preferential tax rates on imported petroleum to
25 percent from 35 percent. The new rate will be applied to imported petrol from
Feb. 10.

The tax cut is a move to support petroleum importers at a time when global oil
prices are predicted to rise.

The Ministry of Finance issued a circular on Feb. 5 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, lubricant, naphtha and reformatic petrol, will drop to 25
percent.

The ministry said that the decrease in petroleum was based on current stabilised
petroleum prices. The world oil price is currently 42 USD per barrel. On January 24,
the ministry decided to cut import tax on petroleum items from 40 percent to 35
percent in order to support petroleum importers.

Last year each company consumed about 7.5 million litres of petrol and about 15-16
million litres of kerosene. Now the demand has been reduced, according to
Petrolimex.

When Dung Quat Oil Refinery comes into operation later this month, petroleum imports
will reach about 12.2 million tonnes this year. Of that volume, 1 million tonnes
will be re-exported and domestic consumption will account for 11.2 million
tonnes.-Enditem