Ministry of Finance responds to voters' petitions about rising gasoline prices

The Ministry of Finance issued Official Letter 1542/BTC-CST responding to voters' petitions about the rising petrol prices.

Ministry of Finance responds to voters' petitions about rising gasoline prices

The Ministry of Finance responds to voters' petitions about rising gasoline prices (Illustration image)

Previously, voters in Hanoi reflected that, currently, the Ministry of Finance applies the petrol price structure to include taxes and fees that are too high such as (import tax 10%, VAT 10%, consumption tax). special 10%, environmental protection tax 3,800-4,000 VND/liter; 4 types of taxes account for 38%), other costs such as transportation costs, business norms, normed profits, stabilization funds account for 62 % leading to high domestic gasoline prices, high CPI. Request the Ministry of Finance to study and adjust taxes and fees accordingly to reduce gasoline prices, contributing to alleviating difficulties for the people.

Accordingly, the Ministry of Finance replied on tax policy, tax structure, fees and components in the base price formula of petroleum products as follows:

- Currently, the taxes applied to petroleum products include: import tax (for imported gasoline), value-added tax, excise tax (for gasoline) and environmental protection tax. market (no charge or fee for petrol and oil), ensuring compliance with international practices as well as Vietnam's practice.

Compared with many countries in the world, the proportion of tax in the price of gasoline sold in our country is still lower than the general average. The proportion of tax in the selling price of gasoline in many countries is mainly in the range of 45%-60% (except for some countries with large oil reserves, the proportion is lower), while, for our country, the tax rate for gasoline is about 38% and for oil about 20%.

In addition, in the selling price of gasoline, there are also transportation costs and normative profits, but these amounts only account for about 5% to 8% of the base price of petroleum products.

Regarding the management of domestic gasoline prices , the Ministry of Finance said that in order to effectively manage and use the Petroleum Price Stabilization Fund (BOG), the Ministry of Finance issued Circular 103/2021/TT-BTC guiding the method method of setting up, spending, using and managing the petrol and oil price stabilization fund.

In the past time, the BOG petrol and oil fund tool has been used flexibly and effectively, helping the management of domestic gasoline prices to increase/decrease at an appropriate level, without any sudden price spikes. In 2021, the BOG Fund will be used almost continuously to stabilize or limit price increases, thereby, contributing to price stabilization and supporting life, production and business in the context of the COVID-19 pandemic. complex variable.

Recently, under the close direction of the Government, the Ministry of Finance has actively researched and proposed policies and solutions to support taxes, fees, fees and land rent such as: extending the payment deadline. taxes (VAT, CIT, PIT, SCT) and land rent; exempt or reduce a number of taxes, fees, charges, land rent and late payment interest to support people and businesses against the negative effects of the COVID-19 epidemic.

In particular, the Government submitted to the National Assembly for approval Resolution 43/2022/QH15 , on that basis issued Decree  15/2022/ND-CP . Accordingly, the regulation to reduce the VAT rate of 2% in 2022 for groups of goods and services currently applying the VAT rate of 10% (remaining 8%), except for some groups of beneficial goods and services. and goods and services subject to excise tax.

Regarding tax policy for petroleum products, the Ministry of Finance will continue to coordinate with relevant ministries and sectors to closely monitor petrol price movements in the domestic and world markets to study, advise competent authorities on solutions suitable to the current context and practice.

For details, see Official Dispatch 1542/BTC-CST issued on February 18, 2022.

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