Petrolimex urges Vietnam to lower tariff to 5%

The government of Vietnam should lower petroleum import taxes to 5% maximum from the current 40%, the VietNamNet online newspaper reported, citing the state-owned Vietnam National Petroleum Corp. (Petrolimex) General Director Bui Ngoc Bao. Bao said that the 0-5% tax range would be more reasonable than the current 0-40% as the country’s petroleum imports have gradually decreased since the operation of its first oil refinery in Dung Quat. He said that the government should levy taxes on traders’ petroleum sales to offset the state budget. Vietnam’s petroleum traders and consumers are incurring a combined 5,900 dong (US$0.33) worth of taxes and fees per liter of gasoline, accounting for 37.57% of the domestic retail price of 15,700 dong (US$0.88) per liter. (September 25, 2009)