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The tax amount of imported petrol has decreased sharply in recent years

13:08 | 31/05/2018 Finance Follow english.haiquanonline.com.vn on
VCN – According to statistics of the Ministry of Finance, it shows that a number of years ago when cutting down tariffs on gasoline under FTAs, the import tax collection on gasoline continued to fall sharply.
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The tax amount of imported petrol will continue to decrease until the import duty goes to 0%

Till now, Vietnam has been involved in 12 FTAs, two of which have yet to be signed that are the ASEAN-Hong Kong Agreement (AHKFTA) and the Trans-Pacific Partnership on Transparency and Progress (CPTPP).

Vietnam is applying MFN tariff rates to all WTO member countries. Accordingly, Vietnam committed to impose a ceiling import tax (maximum) of 40% on gasoline.

As commitment in the intra-ASEAN (ATIGA Agreement), from 2012, the special preferential tariff for gasoline is 20%, diesel 5%, oil is 7%, flight fuel is 10%, mazut oil is 0% (oil products went to 0% from 2016, except mazut oil).

At the Vietnam - South Korea (VKFTA) FTA, from 2016, the special preferential tariff for petroleum products is 10%, oil products are 5% (now, the petroleum products are 0 %). The special preferential import tax rate for petroleum products committed in the agreements is gradually decreasing to 0%.

If taking the basis of real output imported from the markets in 2015, 2016 and 2017, the price for calculating import tax on petrol and oil would be based on the price on 3/2015; Applying the MFN import tax rate of 40% compared to the special preferential import tax rate of ATIGA is 20% and VKFTA is 10% to calculate the sharp decrease.

Specifically: tax revenue from imported petroleum will decrease from 53 thousand billion VND in 2015 to about 13.4 thousand billion VND in 2016 (decreased by about 39.6 thousand billion VND compared to 2015); about 14.1 thousand billion VND in 2017 (reduced by 38.9 thousand billion VND compared to 2015, revenue in 2017 slightly increased compared to 2016 due to increased import volume) and it will decrease to about 10.3 thousand billion VND in 2018 (decrease of 42.7 thousand billion VND compared to 2015).

In addition, the import tax on gasoline will continue to fall until the import tax is reduced to 0% (according to ATIGA, the tax rate for gasoline will be 0% in 2024).

By H.Vân/Thanh Thuy
Tags:
imported petrol cutting down tariffs gasoline FTAs tax collection tax rate for gasoline will be 0%

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