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Taxes adjusted to slow imports, cut losses and help stock farmers
The Ministry of Finance adjusted the tariff structures on diesel fuel, kerosene, animal feed and steel alloy this week, increasing the duty on the latter while lowering the import taxes levied on the other classes of products.
The ministry cut the import duty on diesel fuel and kerosene by 5 per cent in a bid to help petrol importers reduce losses, as they were squeezed between fixed domestic retail prices and the high costs of imported petroleum products.
The decision, effective April 20, will reduce the tariff on diesel from the current 25 per cent to 20 per cent and that of kerosene, from 40 per cent to 35 per cent.
Last Saturday, the retail price of petrol was increased another VND500 (US$0.03) a litre, the second increase this month, following a rise of VND500 on April 2.
A litre of A92 unleaded petrol – the most common fuel for motorbikes and cars – now goes for VND12,000, with high-grade A95 unleaded priced at VND12,500 per litre.
The ministry said the adjustment in petrol prices was made at the request of major petrol importers and retailers, who claimed they were incurring losses as a result of the increase in world oil prices, now up to around $60 per barrel.
Meanwhile, the import duty on steel alloy will be increased from the current 0 per cent to 10 per cent, also effective April 20.
The higher duty on steel alloy was viewed as a reaction to recent discoveries by the Viet Nam Steel Association and the Ministries of Finance and of Industry and Trade that construction companies were importing steel alloy to enjoy exemption from import duties.
While the higher import tax has not yet taken effect, many suppliers nationwide have already raced to increase steel alloy prices by VND100,000-150,000 per tonne.
This week, the Ministry of Finance also cut the import duty on animal feed and raw materials used to produce feed from 7 per cent to 0 per cent.
VietNamNet, VNS
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