Vietnam restores 5 pct jet fuel import tax

Vietnam will reimpose an import tariff of 5 percent on aviation fuel, following lower world oil prices, local newspapers reported Thursday.

The new tariff will be effective from November 2, the Nhan Dan (People) newspaper cited a Finance Ministry directive as saying.

Hanoi waived the tariff on aviation fuel in late June as part of efforts to help its three domestic carriers cope with record high world prices.

Vietnam imports all of its jet fuel requirement as it lacks refineries.

Flag carrier Vietnam Airlines has said it would have to pay nearly US$138 million in additional fuel costs this year if crude prices stayed above $140 a barrel.

The government had said last week it considered doubling fuel import tariffs to 10 percent. It later decided not to raise the tariffs to give room for importers to reduce retail prices.

Thanhnien

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