Vietnam proposes fuel tax incentive extension until September

Hanoi (ANTARA) - Vietnam’s Ministry of Finance has proposed extending tax incentives on petroleum products, fuel production inputs, and aviation fuel until 30 September to help stabilise domestic energy prices amid global market uncertainty, local daily Nguoi Lao Dong reported on Thursday (25/6). Under the proposal, a zero per cent preferential import tariff would remain in place for petroleum products and fuel production inputs, while the environmental protection tax would stay at zero and value-added tax (VAT) would continue to be exempted for these products as well as aviation fuel. The ministry stated that risks to the global oil market persist due to ongoing tensions in the Middle East, and that reinstating fuel taxes in the near term would likely increase domestic fuel prices and inflationary pressures. Vietnam initially cut import tariffs on several petroleum products and production inputs to zero until 30 April, and later extended the policy until 30 June, the report added.