Traders propose to exempt ethanol from luxury tax

Petroleum traders have proposed that Vietnam’s Ministry of Finance exempt ethanol from the special consumption tax of 10% and from the transport fee of VND1,000 (US$0.05). Vietnam plans to have five ethanol plants with a combined annual capacity of 365,000 tons by the end of 2011 to meet domestic demand, the Tuoi Tre newspaper reported. E5, a blend of 5% ethanol and 95% A92 gasoline, is said to reduce greenhouse gas emissions by between 20% and 35%. (July 6, 2010)