Officially reducing import duty of petroleum products to 10%
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.
Related News
Minister of Finance Nguyen Van Thang: Facilitating trade, ensuring national security, and preventing budget losses
19:09 | 21/12/2024 Customs
Hai Phong Customs processes over 250,000 declarations in November
15:18 | 19/12/2024 Customs
Binh Duong Customs surpasses budget revenue target by over VND16.8 Trillion
09:39 | 18/12/2024 Customs
Ho Chi Minh City achieves record state revenue of over VND500 trillion in 2024
10:33 | 10/12/2024 Finance
Latest News
Corporate bond issuance value rises by 60 per cent
13:51 | 24/12/2024 Finance
Slower mobilization than credit may put pressure on interest rates
09:02 | 24/12/2024 Finance
Fed’s foreseen rate cuts affect foreign exchange rate
14:12 | 23/12/2024 Finance
Untying the knot for green finance
11:08 | 23/12/2024 Finance
More News
Ensuring efficiency and transparency in use and management of houses and land at State enterprises
13:54 | 22/12/2024 Finance
Vietnam's stock market to develop strongly and sustainably
19:08 | 21/12/2024 Finance
Tax sector achieves revenue target of about VND1.7 million billion
18:32 | 21/12/2024 Finance
General inventory of public assets raises efficiency of use and management of country's resources
09:29 | 20/12/2024 Finance
Publicizes progress of public investment disbursement for important national projects
15:21 | 19/12/2024 Finance
Six SOEs to be transferred back to industry ministry
15:38 | 18/12/2024 Finance
PM urges stronger measures to manage interest rates
16:53 | 17/12/2024 Finance
Six SOEs to be transferred back to industry ministry
16:48 | 17/12/2024 Finance
Vietnamese products: Conquering foreign customers in supermarket systems
16:45 | 17/12/2024 Finance
Your care
Corporate bond issuance value rises by 60 per cent
13:51 | 24/12/2024 Finance
Slower mobilization than credit may put pressure on interest rates
09:02 | 24/12/2024 Finance
Fed’s foreseen rate cuts affect foreign exchange rate
14:12 | 23/12/2024 Finance
Untying the knot for green finance
11:08 | 23/12/2024 Finance
Ensuring efficiency and transparency in use and management of houses and land at State enterprises
13:54 | 22/12/2024 Finance