Vietnam removes import taxes for kerosene, fuel oil

Vietnam’s Ministry of Finance has removed import taxes for kerosene and fuel oil effective February 24, from a tariff of 2% previously. This is the fourth time since December 2010 that Vietnam has reduced import taxes for oil products. In the last tax cut on January 14, the ministry abolished import taxes on gasoline and diesel fuel, and reduced the tariffs on kerosene and fuel oil to 2%, from 6% and 5%, respectively. A source at state-owned Petrolimex — Vietnam’s biggest oil importer which accounts for 60% of the domestic oil market — said on February 23 that domestic oil importers suffer an estimated loss of VND3,000 (14 US cents) for every liter of gasoline they sell and VND4,000 (19 US cents) for every liter of diesel fuel, kerosene and fuel oil they sell. (February 23, 2011)