RSS   Newsletter   Contact   Advertise with us

Vietnam cuts import tariffs on oil products from non-FTA countries

Staff writer ▼ | April 15, 2015
Vietnam has effective Tuesday, April 14, cut import taxes levied on oil products from countries it does not have free trade agreements with, the Ministry of Finance said.
Vietnam import
Trade   The Ministry of Finance of Vietnam announced
Import tariffs on gasoline and kerosene have been cut to 20% from 35%, diesel to 20% from 30%, fuel oil to 25% from 35%, and to 10% for jet fuel from 25% previously.

On May 1, Vietnam will raise environmental protection taxes on oil products, the ministry said last month.

The tax will be raised to Dong 3,000 ($0.14)/liter from Dong 1,000/liter for gasoline and jet fuel, to Dong 1,500/liter from Dong 500/liter for diesel, and to Dong 900/liter from Dong 300/liter for kerosene and fuel oil.

As for countries it has FTAs with, Vietnam has further levied different import tax rates over 2015-2018 under three agreements: the ASEAN Trade in Goods Agreement (ATIGA), the ASEAN-China and the ASEAN-Korea FTAs.

Under the ATIGA, the import tariff on gasoline from ASEAN nations is at 20%, and at 5% for diesel, kerosene and fuel oil. Vietnam will remove the import tax on diesel, kerosene and fuel oil from 2016 and import tariff on gasoline from 2018.

Under the FTA with China, Vietnam's import tax on gasoline is set at 20% for gasoline, 10% for jet fuel, 8% for diesel, and 10% for kerosene over 2015-2018.

As for the FTA with South Korea, only diesel and kerosene are levied with a preferential import tax rate of 5% over 2015-2017, and this will be abolished from 2018.

Further out, the finance ministry will impose import tax rates under the ATIGA, which are the lowest, on all oil product imports irrespective of country of origin to avoid having too many import tariff rates, the ministry said last month, without providing a time frame.