What are the regulations on the cost of gasoline excise tax in Vietnam?

What are the regulations on the cost of gasoline excise tax in Vietnam?

Pursuant to Article 4 of Circular 104/2021/TT-BTC, there are provisions on the cost of gasoline excise tax as follows:

1. The excise tax specified under this Circular only serves calculation of base petrol and oil price in accordance with Article 1 of Decree No. 95/2021/ND-CP. This cost shall be determined by the price whose excise tax is to be calculated multiplied by (x) Excise tax rate (%) in accordance with Article 1 of Decree No. 95/2021/ND-CP. In which:

a) Excise tax rates shall be determined in accordance with applicable legislative documents on excise tax.

b) The price whose excise tax is to be calculated mentioned under this Circular only serves calculation of base petrol and oil price and is determined as follows:

The price whose excise tax is to be calculated in the formula for domestically produced petrol and oil price is determined by (=) Worldwide petrol and oil price multiplied by (x) Exchange rate plus (+) or minus (-) domestic premiums.

The price whose excise tax is to be calculated in the formula for imported petrol and oil price is determined by (=) Worldwide petrol and oil price multiplied by (x) Exchange rate plus (+) Costs for transporting gasoline to Vietnamese ports from overseas plus (+) Import duties plus (+) Percentage (%) multiplied by (x) (Standard operating costs + Standard profit) plus (+) Contribution to Price Stabilization Fund (if any).

The price whose excise tax is to be calculated serving calculation of biogasoline is determined by (=) Percentage of gasoline volume (%) multiplied by (x) [{World gasoline price multiplied by (x) Exchange rate plus (+) Costs for transporting gasoline to Vietnamese ports from overseas plus (+) Gasoline import duties} multiplied by (x) Ratio of gasoline imported (%) plus (+) {World gasoline price multiplied by (x) Exchange rates plus (+) domestic premiums plus (+) Costs for transporting gasoline from domestic refineries to ports (if any)} multiplied by (x) Ratio of domestically produced gasoline (%)}] plus (+) Percentage of Ethanol fuel volume (%) multiplied by (x) Ethanol fuel price plus (+) Percentage (%) multiplied by (x) (Standard operating costs + Standard profit) plus (+) Contribution to Price Stabilization Fund (if any).

2. Based on specialized reports on petrol and oil sale price produced by major petrol and oil traders specified under Article 7 hereof; Ministry of Finance shall review and announce the percentage (%) of (Standard operating costs + Standard profit) (if any) before July 1 annually to enable Ministry of Industry and Trade to apply and calculate excise tax rates in the formula for base price.

3. Exchange rate of worldwide petrol and oil price serving calculation of excise tax in the base price formula shall conform to Clause 9 Article 1 of Decree No. 59/2018/ND-CP dated April 20, 2018 of the Government on amendment to Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government on elaborating to Law on Customs regarding customs procedures, inspection, supervision, and control and amending documents.

What are the regulations on the cost of bringing petroleum from abroad to the port of Vietnam?

According to Article 5 of Circular 104/2021/TT-BTC, the cost of bringing petroleum from abroad to Vietnam port is as follows:

1. Costs for transporting petrol and oil to Vietnamese ports from overseas only serve calculation of base petrol and oil price in accordance with Article 1 of Decree No. 95/2021/ND-CP. These costs shall be determined using weighted average of import petrol and oil quantity of major petrol and oil traders.

a) Costs for transporting petrol and oil to Vietnamese ports from overseas include premiums, insurance costs, costs for transporting petrol and oil from overseas or from bonded warehouses to Vietnamese ports and other costs incurred (if any).

b) Major petrol and oil traders are responsible for sending reports on reviewing costs for transporting petrol and oil to Vietnamese ports from overseas using Form under Annex No. 1 attached hereto to Ministry of Finance (Department of Price Management) before June 21 and December 21 annually. Figures of the report which is submitted on June 21 shall be collected from December 1 of the previous year to May 31 of the reporting year. Figures of the report which is submitted on December 21 shall be collected from June 1 to November 30 of the reporting year.

2. On the basis of reports on costs for transporting petrol and oil to Vietnamese ports from overseas submitted by major petrol and oil traders, Ministry of Finance (Department of Price Management) shall consolidate, review, assess, and (if necessary) request additional reports and physical inspection.

Ministry of Finance shall announce costs for transporting petrol and oil to Vietnamese ports from overseas on January 10 and July 10 annually (or the next working day if the submission date is a holiday or not a working day) to enable Ministry of Industry and Trade to apply and calculate base price. In case of any irregular change (increase or decrease) to the costs caused by objective reasons, Ministry of Finance (Department of Price Management) shall request major petrol and oil traders to submit reports on costs incurred in their entities on the basis of propositions of agencies, organizations, and individuals (if any). Ministry of Finance shall then assess and cooperate with Ministry of Industry and Trade in adjusting accordingly.

Best Regards!