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Government hikes fossil fuel export tax
The Ministry of Finance has decided to increase export taxes on crude oil, coal and ore to 20 percent, effective on June 18.
The rise is the second of its kind this year in an attempt to restrict the export of the country’s natural fuel resources, said the ministry’s General Department of Taxation.
The ministry stipulated that the export tax on crude oil would increase to 20 percent from the current 8 percent and on coal to 20 percent from the current 15 percent.
The tax on aluminium, tin, uranium and other ores used in cement production will be raised to 20 percent from the current 10-15 percent.
According to the ministry, the country is reducing fossil fuel export, including crude oil and coal to help petroleum and petrochemical industries and ensure sufficient supplies for energy-needy industries like electricity and cement.
On April 22, export taxes were raised for the first time this year. Crude oil tax rose to 8 percent from the previous 4 percent, coal to 15 percent from 10 percent and most metal ores to 20 percent from 7-15 percent.
In the first five months of the year, the country exported 5.7 million tonnes of crude oil worth 4.5 billion USD, down 11.3 percent in volume but up 45.5 percent in value, according to the country’s General Statistics Office (GSO).
It spent nearly 4.9 billion USD importing 5.8 million tonnes of petroleum products, posting respective year-on-year increases of 68.7 percent and 6.2 percent, according to GSO.
The country aimed to export roughly 16 million tonnes of crude oil this year, up 6.7 percent over last year.
The country’s export strategy during 2006-10 as approved by the Prime Minister required a reduction in crude oil and coal exports. This year’s coal exports were to fall by roughly 1 million tonnes over 2007 to 10 million tonnes and the figures for 2009 and 2010 should be at around 9 and 8 million tonnes, respectively.
VNA
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