Tax proportion in petrol price in Vietnam is lower than the average rate
Regulations on tax debt relief for enterprises that have fled or gone missing | |
Big data to help collect tax from foreign service providers |
According to the Ministry of Finance, the proportion of tax in the selling price of gasoline is about 20-21%, for oil it is about 10-11%. Photo: Hong Nu |
In a petition sent to the Ministry of Finance before the 5th session, the 15th National Assembly, voters of Dong Nai province reflected that currently, the State has taken many measures to reduce gasoline prices, however, the current price level is still high, partly because many taxes and fees account for a high proportion of gasoline and oil prices. Voters proposed to reduce some taxes and fees in petrol prices so that petrol prices are stable and meet people's living needs.
Answering voters on this issue, the Ministry of Finance said that, according to current regulations, the State manages gasoline prices according to the market mechanism; respecting the freedom of pricing and price competition of production and business organizations and individuals in accordance with the law.
With the current domestic petrol and oil price adjustment mechanism, the costs of forming the base price of petrol are publicly and transparently announced. According to the Ministry of Finance, the taxes applied to petroleum products include: import tax (for imported gasoline), VAT, excise tax (for gasoline) and environmental protection tax. The current law on fees and charges does not stipulate the collection of fees and charges for petrol and oil.
The response document of the Ministry of Finance has specifically listed each tax rate as well as the calculation of taxes applicable to petroleum products.
For example, in terms of import tax, with special preferential import tax, petroleum products are implemented according to commitments in the framework of a number of Free Trade Agreements (FTAs) that Vietnam has signed. For the preferential import tax (MFN tax), in order to diversify the supply of imported petroleum to the market, the Ministry of Finance submitted to the Government for promulgation a Decree on reducing tax rates for some gasoline groups from 20% to 10 %. This is expected to lower the cost of domestically produced gasoline products in the context that gasoline prices may fluctuate in the future.
For gasoline, the excise tax rate is currently low on average compared to other countries. The special consumption tax rate for biofuel is also regulated lower than mineral gasoline in order to encourage the use of biological materials and protect the environment. The charge rate is 10% for gasoline; biofuel E5 is 8%; E10 is 7% and there is no regulation to collect this tax on oil.
According to the Ministry of Finance, for many countries, the tax proportion in the selling price of gasoline and oil is mainly in the range of 45-60%, except for some countries with large oil reserves, the proportion is lower. While in our country, the proportion of tax in the selling price with gasoline price is about 20-21%, for oil about 10-11%. Through monitoring gasoline price movements in some countries, gasoline prices in Vietnam are lower than the common level. |
As for the environmental protection tax, from the end of 2022, in order to stabilize prices and control inflation, the Ministry of Finance has studied to continue reducing this tax on gasoline, oil and grease this year.
From the above analysis, the Ministry of Finance affirmed that, compared with many countries in the world, the proportion of tax in the price of gasoline and oil sold in our country is lower than the general average.
Citing data of Global Petrol Prices dated July 10, 2023, the document of the Ministry of Finance said that the fuel price of countries sharing a border with Vietnam such as China is 26,956 VND/liter; Laos is 32,698 VND/liter and Cambodia is 27,489 VND/liter.
Meanwhile, in the adjustment period on 11/7/2023 in Vietnam, the price of E5 RON 92 gasoline sold in the domestic market was 20,410 VND/liter, RON 95 gasoline was 21,490 VND/liter. According to the Ministry of Finance, this price is significantly lower than the common price level of countries in the region as well as the world average (30,649 VND/liter).
The Ministry of Finance emphasized that the issue of continuing to adjust and reduce taxes on petroleum products will affect the state budget while the budget balance is still difficult, the need for budget spending to implement policies to restore economic recovery, assure social security, delete hunger and alleviate poverty is very huge.
The Ministry of Finance will continue to coordinate with the Ministry of Industry and Trade to closely monitor the developments of the petroleum market, continue to study and propose to the competent authorities tax solutions for petroleum products in the near future, contribute to achieving the goal of controlling inflation and supporting economic recovery.
Related News
Price stability from supply increase and transparency in trading in gold market
09:42 | 25/04/2024 Finance
Regulating prices and controlling inflation in the "variables"
13:22 | 08/02/2024 Finance
Pressure on price level remains, it is necessary to be proactive and flexible in management plans
10:20 | 25/01/2024 Finance
Inflation increased by 4.16% in 2023
09:31 | 13/01/2024 Headlines
Latest News
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
Closely monitoring fluctuations to calculate the appropriate time to adjust prices
15:35 | 02/05/2024 Finance
Strictly monitor market fluctuations to appropriately adjust prices
14:46 | 27/04/2024 Finance
More News
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance
How does the Land Development Fund work effectively?
09:19 | 26/04/2024 Finance
Vietnam seeks to remove obstacles in upgrade of securities market
13:50 | 25/04/2024 Finance
SBV takes more actions to stabilise foreign exchange rates
13:43 | 24/04/2024 Finance
Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT
10:35 | 24/04/2024 Finance
Corporate bond maturity in 2024 remains high: MoF
13:51 | 23/04/2024 Finance
Support clearance procedures for imported gold for bidding
09:33 | 23/04/2024 Finance
The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low
09:32 | 23/04/2024 Finance
Majority of credit institutions forecast profit growth in 2024
15:16 | 22/04/2024 Finance
Your care
Banks strengthen information security systems
14:55 | 03/05/2024 Finance
“Opportune environment” for growth of insurance enterprises
10:15 | 03/05/2024 Finance
Closely monitoring fluctuations to calculate the appropriate time to adjust prices
15:35 | 02/05/2024 Finance
Strictly monitor market fluctuations to appropriately adjust prices
14:46 | 27/04/2024 Finance
Closely monitoring market fluctuations to consider appropriate time to adjust prices
09:30 | 26/04/2024 Finance