>> Vietnam drops petroleum import taxes in hopes of relief
The Vietnamese Ministry of Finance has decided to eliminate import tariffs on some petroleum products to help stabilise the domestic market begining January 14.
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| Higher prices in the world market pressures local market |
The decision brings the the import taxes on gasoline and diesel down to zero, from 6% and 2%, respectively.
Meanwhile, the new import tax rates on kerosene and fuel oil have both been reduced to 2%, from 6% and 5% respectively.
Although the first of its kind this year, it is the third import tax reduction on petroleum products since December 23.
The ministry also allowed petroleum traders to receive an additional VND600 per litre of diesel from January 15, which is sourced from the petroleum price stabilization fund, to keep petroleum prices unchanged. Earlier, they recieved VND1,000 per litre of diesel.
Currently, Vietnamese consumers contribute VND300 per liter of petroleum to this price stabilisation fund. This contribution is included in the price they pay at the pump, which companies are authorised to collect. Although it adds a bit to the price of each litre of gasoline the consumer buys, it is meant to protect the consumer from global price hikes. In late 2010, the Ministry of Finance requested petroleum companies in Vietnam not raise prices until the end of the first quarter of 2011. The aim of this move is to stabilise the domestic market as well as to curb inflation.
