Officially reducing import duty of petroleum products to 10%

VCN – The Government promulgated Decree No.51/2022/NĐ-CP, officially reducing the rate of import duty for unleaded fuel under the HS code (from 2710.12.21 to 2710.12.29) from 20% to 10%.
the rate of import duty for unleaded fuel reduce by 10%. Photo: Nguyễn Thanh
The rate of import duty for unleaded fuel reduce by 10%. Photo: Nguyễn Thanh

The Government promulgated Decree No.51/2022/NĐ-CP, amending the rate of preferential import duty for petroleum under heading 27.10 at the Preferential import tariff schedule following the list of goods subject to tax attached to Decree No.57/2020/NĐ-CP of the Government dated May 25, 2020, on amending and supplementing a number of articles of Decree No. 122/2016/NĐ-CP of the Government dated September 1, 2016 on Schedule of Export Duty and Preferential import Tariffs, List of goods and its flat tax compound tariff and out of quota import tariff; Decree No. 125/2017/NĐ-CP dated November 16, 2017 amending and supplementing a number of articles of Decree No. 122/2016/NĐ-CP.

Amending the Most Favored Nation (MFN) for gasoline products in heading 27.10 specified in Appendix II - Preferential import tariff according to the List of goods subject to tax specified in Clause 1, Article 2, Decree No. 57/2020/ND-CP dated May 25, 2020 of the Government, into a new preferential import tax rates specified in the Appendix issued together with Decree Decree No. 51/2022/ND-CP.

The import tax rate for unleaded fuel (under HS code from 2710.12.21 to 2710.12.29) is decreased from 20% to 10%.

According to the Ministry of Finance, compared with many countries, the proportion of tax on price of petroleum in Vietnam is still lower than the general average. The proportion of tax in the price of petroleum in many countries is mainly in the range of 40%-55% for gasoline and 35%-50% for oil (except for some countries with large oil reserves). In Vietnam, with the environmental protection tax rate being reduced to the floor level according to the resolution passed by the Standing Committee of the National Assembly, the tax proportion in the price of petrol is about 19.39% for E5RON92, 21.95% for RON95 and about 11.05% for diesel.

Assessing the impact on revenue collection, according to the Ministry of Finance, currently, gasoline products are mainly imported from countries that have signed FTA Agreements with Vietnam, so they are subject to import tax rates under FTA which is lower than the MFN import tax rate.

According to the General Department of Vietnam Customs, in 2021, Vietnam’s total import turnover with tax on petroleum products was US$475.26 million. In particular, imports from countries that have signed FTAs ​​with Vietnam were US$474.1 million (accounting for 99.7%). In the first five months of 2022, the total import turnover with tax on gasoline products was US$826.53 million, which is also basically imported from countries that have signed FTAs with Vietnam.

It can be seen that the proportion of imported gasoline under the current MFN import tax rate is low, in the event that other conditions remain unchanged, the reduction of the MFN import tax rate for gasoline products following the basic plan will not have much impact on state revenue collection.

By Thùy Linh/Thanh Thuy

Related News

Khanh Hoa Customs announce information of 12 enterprises owing over VND65 billion of tax

Khanh Hoa Customs announce information of 12 enterprises owing over VND65 billion of tax

VCN - According to Khanh Hoa Customs Department, through checking and review until March 31, 2024 at the unit, there is 12 enterprises and one individual owing tax debt of over VND65 billion.
The Customs sector collected more than VND 88 trillion in revenue in the first quarter of 2024

The Customs sector collected more than VND 88 trillion in revenue in the first quarter of 2024

VCN - The Customs sector's revenue collection results in March increased compared to the previous month, but in general, the result of the first quarter dropped compared to the same period last year.
Budget revenue collection for the first quarter of 2024 achieved quite well compared to current appropriation

Budget revenue collection for the first quarter of 2024 achieved quite well compared to current appropriation

VCN - In the first 3 months of 2024, total revenue collection is estimated to reach VND539.5 trillion, equal to 31.7% of current appropriation, an increase of 9.8% over the same period in 2023. According to the Ministry of Finance's assessment, revenue of the first quarter of 2024 is quite good compared to current appropriation, mainly due to the concentration of revenues arising in the fourth quarter of 2023 and the difference according to the tax finalization 2023 following the regime of declaration and payment to the state budget in the first quarter of 2024.
State revenue collection reached 31.7% of current appropriation in the first quarter

State revenue collection reached 31.7% of current appropriation in the first quarter

VCN - According to General Department of Statistics, State revenue collection in quarter 1 is estimated to increase 9.8% compared to the same period last year. In particular, expenditure rose 8.3% over the same period in 2023, ensuring the demand of socio-economic development, national defence, security, state management, making payment of liabilities as well as paying for the subjects on time as stipulated.

Latest News

Savings interest rates begin rising amid slowing bank deposits

Savings interest rates begin rising amid slowing bank deposits

While some commercial banks continue lowering deposit interest rates, others are increasing the rates, particularly for term deposits of 12 months or longer.
Ministry of Finance conducts general verification of public assets

Ministry of Finance conducts general verification of public assets

VCN - The Ministry of Finance issued Decision No.798/QĐ-BTC on the plan for implementing Decision No.213/QĐ-TTg of the Prime Minister approving the scheme on general verification of public assets at agencies, organizations, and units as well as infrastructures that are invested and managed by the State.
Removing bottlenecks to develop the green bond market

Removing bottlenecks to develop the green bond market

VCN - Currently, there are still many bottlenecks for the development of the green finance market and green bonds. Therefore, solutions are needed to increase resources for businesses and the economy.
Improving legal framework, ensuring accessibility to green bonds

Improving legal framework, ensuring accessibility to green bonds

VCN - This is the recommendation of Mr. Nguyen Tung Anh (photo), Head of Credit Risk Research and Sustainable Financial Services (FiinRatings) in an interview with Customs Magazine reporters about green bond market development in Viet Nam.

More News

Foreign experts discuss ways to help Vietnam upgrade stock market

Foreign experts discuss ways to help Vietnam upgrade stock market

Chairwoman of the State Securities Commission (SSC) Vu Thi Chan Phuong has held a working session with representatives from FTSE Russell and Morgan Stanley to discuss how to upgrade the Vietnamese stock market.
Ambitious profit goals of banks

Ambitious profit goals of banks

VCN - With low profits and expectations of a better economic situation, banks "boldly" submitted to the General Meeting of Shareholders profit targets with high growth rates.
PM demands strengthened gold market management

PM demands strengthened gold market management

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to keep a close watch on international and domestic gold prices, and put in place measures and tools in a timely and effective way to regulate the gold market in line with regulations.
Budget expenditures reached VND393.5 trillion, growing 8.3% over the same period in the first quarter

Budget expenditures reached VND393.5 trillion, growing 8.3% over the same period in the first quarter

VCN - The Ministry of Finance said that the total balance of budget expenditure in March was estimated at VND140.3 trillion; accumulated budget expenditures in the first quarter of 2024 reached VND393.5 trillion, equal to 18.6% of current appropriation, an increase of 8.3% over the same period in 2023.
Inflationary pressure stems  from commodity price fluctuations

Inflationary pressure stems from commodity price fluctuations

VCN – According to a report from the Ministry of Finance, the domestic market prices in the first quarter were stable and fluctuated in accordance with the price management scenario of the Price Management Steering Committee. However, the current impact from adjusting the prices of essential goods is a pressure on inflation control.
SMEs offered loans at preferential rates of 1.2-4.4%

SMEs offered loans at preferential rates of 1.2-4.4%

To create additional capital mobilisation channels for small- and medium-sized enterprises (SMEs), Vietnam’s Small- and Medium-sized Enterprise Development Fund under the Ministry of Planning and Investment is offering SMEs loans at preferential interest rates of 1.2-4.4% per year.
Public investment disbursement needs to be accelerated to boost growth: insiders

Public investment disbursement needs to be accelerated to boost growth: insiders

Public investment is currently still an important growth driver, which needs to be accelerated so as to help the economy achieve a 6.5% growth this year, according to insiders.
Banks seek to attract foreign capital

Banks seek to attract foreign capital

VCN - Banks are actively developing plans to attract capital from foreign investors through various methods, aiming to enhance their capital "buffers" and improve their management and operational standards to meet international levels.
Continue to implement and complete important customs cooperation initiatives in ASEAN

Continue to implement and complete important customs cooperation initiatives in ASEAN

VCN - Talking to the press on the sidelines of the 28th ASEAN Finance Ministers' Meeting (AFMM 28) taking place in Luang Prabang, Laos, Vietnam’s Minister of Finance Ho Duc Phoc emphasized that the meeting affirms the determination of ASEAN financial agencies to strengthen cooperation and work together to solve common challenges of the region in the context of the world and the region facing many changes, difficulties and challenges.
Read More

Your care

Latest Most read
Savings interest rates begin rising amid slowing bank deposits

Savings interest rates begin rising amid slowing bank deposits

While some commercial banks continue lowering deposit interest rates, others are increasing the rates, particularly for term deposits of 12 months or longer.
Ministry of Finance conducts general verification of public assets

Ministry of Finance conducts general verification of public assets

The Ministry of Finance issued Decision No.798/QĐ-BTC on the plan for implementing general verification of public assets at agencies, organizations, and units
Removing bottlenecks to develop the green bond market

Removing bottlenecks to develop the green bond market

VCN - To achieve green growth goals, Vietnam needs huge resources. According to estimates by the Asian Development Bank (ADB), this resource is about US$368 billion for the entire period to 2040, equivalent to US$20 billion per year.
Improving legal framework, ensuring accessibility to green bonds

Improving legal framework, ensuring accessibility to green bonds

VCN - This is the recommendation of Mr. Nguyen Tung Anh (photo), Head of Credit Risk Research and Sustainable Financial Services (FiinRatings) in an interview with Customs Magazine reporters about green bond market development in Viet Nam.
Foreign experts discuss ways to help Vietnam upgrade stock market

Foreign experts discuss ways to help Vietnam upgrade stock market

Chairwoman of the State Securities Commission (SSC) Vu Thi Chan Phuong has held a working session with representatives from FTSE Russell and Morgan Stanley to discuss how to upgrade the Vietnamese stock market.
Mobile Version