November 19, 2017 18:51

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Ministry of Finance will closely monitor performance of weighted average petroleum tax

17:11 | 06/11/2017

VCN – Responding the question from the press on weighted average petroleum tax at the Government Press Conference on November 3, 2017, Deputy Minister of Finance Vu Thi Mai stated that the Ministry had considered and would coordinate with the Ministry of Industry and Trade for reasonable monitor and operation. 

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ministry of finance will closely monitor performance of weighted average petroleum tax

Deputy Minister of Vu Thi Mai answered questions of the press at the Government Press Conference

According to the Deputy Minister Vu Thi Mai, to calculate the basic price upon the weighted average tax on petroleum, previously, the average tax rate on imported petroleum was calculated in accordance with preferential import tariff (MFN) and the preferential import tariff was lower upon Vietnam’s integration. Particularly, the duty on petroleum imported from South Korea was 10%, from ASEAN was 20%, from countries of MFN was 20%, and from some other countries gradually decreased. Therefore, the Ministry of Finance had reported to the Prime Minister on the new calculation method, which had been approved.

Therefore, the new calculation method which is applied upon weighted average import duty in order to ensure equal benefits for consumers and traders. Thus, over the past operating period, the Ministry of Finance requested to calculate weighted average import duty but add domestically manufactured petroleum amount, specifical petroleum of Dung Quat Oil Refinery Plant

“Because domestic petroleum is not subject to import duty, if the weighted average tax is not applied for petroleum of Dung Quat, the average tax will be higher, making the basic price higher and harming the consumers while benefiting domestic petroleum traders. Besides, the market share of Dung Quat Oil and Refinery Factory in the third quarter accounted 47%, so this calculation method has been approved by the Prime Minister to reduce the selling price and benefit consumers”. said by the Deputy Minister Vu Thi Mai.

However, before the comments that during the last operating period, the weighted average tax rate on petroleum was 8.6% lower than that from South Korea (10%), which would break the supply source, the representative of the Ministry of Finance has affirmed that the Ministry would continue to closely monitor and coordinate with the Ministry of Industry and Trade to operate.

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"If the weighted average tax affects the supply chain of petroleum and the supply source, the Ministry of Finance will cooperate with the Ministry of Industry and Trade to promptly report to the Prime Minister to issue appropriate solutions”, the Deputy Minister said.

By Huong Diu/ Huyen Trang