Vietnam considering fuel tax cuts amid inflation pressure – FinMin

An worker pumps petrol right into a automobile at a petroleum station in Hanoi, Vietnam December 20, 2106. REUTERS/Kham

HANOI, June 8 (Reuters) – Vietnam is contemplating slicing taxes on gasoline to assist ease costs at all-time highs, however inflation stays below management and helped by home meals manufacturing, its finance minister stated on Wednesday.

Taxes of all types account for round 30% of retail costs, together with an 8% import tax and 10% worth added tax.

“Reducing gasoline tax would assist scale back costs and subsequently lower manufacturing prices for companies and increase development,” Ho Duc Phoc informed parliament on Wednesday, with out saying which taxes can be lower, or by how a lot.

Vietnam, a regional manufacturing powerhouse, is dealing with mounting inflation stress, he stated, as a result of heavy reliance on imported fuels, tools, fertilisers and supplies.

Nevertheless, Phoc stated inflation was nonetheless below management, with client costs within the first 5 months of this 12 months having risen by solely 2.25% from a 12 months earlier.

The nation targets inflation under 4% for this 12 months.

He stated home meals manufacturing has helped offset the inflation stress.

Vietnam is the world’s third largest rice exporter, after India and Thailand.

In April, Vietnam halved setting tax on gasoline, and on diesel gasoline and lubricants to 2,000 dong ($0.0863) per litre and 1,000 dong per litre respectively.

Retail gasoline costs in Vietnam vary from 30,230 dong ($1.30) to 32,810 dong ($1.41) per litre.

($1 = 23,185 dong)

Reporting by Khanh Vu; Enhancing by Martin Petty

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