Excise, VAT on fuel set for cuts

It has submitted the options to the National Assembly Standing Committee for consideration and passage by the legislature, with the cuts expected to last six months.

Under one option, the excise on petrol, including E5 and E10 biofuels, will be reduced by 50%, and VAT on petrol, jet fuel, diesel, kerosene, mazut, lubricating oil, and grease will be lowered by 20%.

Under a second option, excise will again halve while VAT will be cut by 50%, and the loss of revenue is estimated at VND12.19 trillion (US$518.55 million).

Over six months, the treasury is expected to lose VND7.43 trillion (US$316.17 million) if these cuts are effected.

The ministry said global oil prices would continue to be volatile, and many countries are dealing with high inflation and fear a recession is imminent. So it is necessary to reduce taxes on petrol and oil in a timely manner to curb inflation and spur the economy.