Despite there being hundreds of petroleum distributors and 36 key petroleum importers, there is still a shortage of gasoline in the market. Minister of Finance Ho Duc Phoc has offered suggestions on ensuring supply and stabilizing prices.
The Ministry of Finance (MoF) issued Official Letter No. 9691/BTC-CST to ministries and branches on September 23, seeking opinions on a draft Resolution from the National Assembly on reducing the special consumption tax (SCT) on gasoline and VAT on oil and gasoline.
The Ministry of Finance has reported that reductions to floor levels in environmental protection taxes for gasoline, oil, and grease will cut State budget revenue this year by more than VND33 trillion ($1.4 billion).
The government issued Decree No. 51/2022/ND-CP on August 8, amending preferential import tax rates on gasoline products (from HS codes 2710.12.21 to 2710.12.29) under the List of Taxable Goods issued together with Decree No. 57/2020/ND-CP dated May 25, 2020. The rate is adjusted downwards from 20 per cent to 10 per cent.
Deputy Prime Minister Le Minh Khai has directed the Ministry of Finance to continue calculating plans to cut excise taxes and VAT on gasoline, carefully assessing the impact on the State budget and making preparations if feasible.
Contributing to a draft resolution on environmental protection tax rates for gasoline, oil, and grease from the Ministry of Finance, the Vietnam Chamber of Commerce and Industry (VCCI) has proposed the Ministry continue to study and evaluate the impact of an abolition of excise taxes on gasoline and to report in writing to the National Assembly. At the same time, the Ministry should carefully consider a plan to cut import taxes on gasoline.
