Vietnam slashes fuel import taxes, again

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Vietnam has cut import tariffs on oil products for the third time this year, following a request by petrol importers.

The Ministry of Finance issued a circular, on Wednesday lowering the tax on leaded and unleaded gasoline and jet fuel to 12 percent from the previous 17 percent.

The order was slated to take effect, immediately.

Meanwhile, the tariff on diesel was cut from 10 to five percent. Other oil products enjoy an import tax of 7 percent, down from 12 percent earlier.

At the end of last month, petroleum product importers requested the tariff cuts, claiming that they found it difficult to comply with government orders to keep their prices stable.

They complained that import taxes on gasoline were at 17 percent while diesel and kerosene carried a 10 percent levy.

The firms considered the taxes high and complained that they not been changed since April.

Thus, they were suffering losses of VND1,500-1,800 per liter due to high global oil prices although the ministry allowed them to tap the fuel price stabilization fund twice this winter (on October 21 and November 13).

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