Vietnam issues new petrol tax regime

Vietnam’s Ministry of Finance on May 31 released the adjusted tax regime for imported petrol products under Decision No. 40/2007. The import tax will be zero-rated if global crude oil prices exceed US$89 a barrel; 5% tax will be imposed at US$83-89 a barrel; 10% tax at US$78-83 a barrel; 15% tax at US$72-78 a barrel; and 20% if crude oil prices hit below US$72 a barrel. Deputy Finance Minister Truong Chi Trung said with the new tax regime, authorities do not have to worry about adjusting tariffs each time there is a hiccup in the world market. Under decision No. 39/2007, which was issued on May 30, import taxes will be reduced from 5% to 0%. The zero tax will continue until Decision No. 40/2007 takes effect at the end of June. (June 5, 2007)