Fuel wholesalers increase imports from ASEAN
Local fuel wholesalers have accelebrated fuel imports from ASEAN markets since early this year to enjoy lower tariffs.
Statistics of the Vietnam Petroleum Association (Vinpa) indicated that of over five million tons of fuels imported in the first half this year, nearly 2.4 million tons (47%) came from Singapore, 732,000 tons from Thailand and 365,000 tons from Malaysia, rising by 54.7%, 236% and 47.9% respectively over the same period last year.
Meanwhile, fuel imports from other traditional markets like China and Taiwan dropped in the first six months of the year.
A fuel wholesaler in the south said that the volume of fuels imported from ASEAN countries increased sharply in the first quarter as local traders took advantage of preferential tax rates.
Before April 13, fuels imported from ASEAN were taxed at 20% for gasoline and 5% for diesel compared to 35% and 30% respectively from other markets.
The Ministry of Finance now applies the same import duty of 20% for gasoline to all markets. However, the tax on diesel is still 5% for imports from ASEAN while diesel imports from other markets are subject to 10%.
Consumers have not benefited from the import tax difference as relevant agencies only use the common tax rates to calculate the base prices of fuels. Moreover, local fuel enterprises are unable to sell fuel products imported from various markets at different prices.