Vietnam further increases petroleum tariff

Amid a recent decline in world oil prices, Vietnam raised import tax on petroleum products to 20 percent from 15 percent, mainly to reduce state pricing subsidy, according to a local tax agency on Monday.

The new tariff, the fourth increase of petroleum tariff over the past month, came into force on Oct. 9, said the Tax Policy Department under the Finance Ministry.

Last month, the ministry re-placed the 5-percent tariff on petroleum products which enjoyed zero tax rate since 2005, and then increased it to 10 percent, and 15 percent.

Vietnam imported over 8.6 million tons of petroleum products worth more than 4.7 billion U.S. dollars in the first nine months of this year, down 2.7 percent in volume but up 25.1 percent in value against the same period last year, according to the country's General Statistics Office.

The country is expected to import only 4 million tons of petroleum products in 2010, since it is building several oil refineries in the coming years. Its demand for petroleum products in 2010 is estimated at 18-19 million tons, according to local economic experts.

Source: Xinhua