Food
The proposal for cuts to special consumption tax and value-added tax on gasoline will not be reviewed in the upcoming National Assembly session.
Addressing the press Monday afternoon, Nguyen Minh Son, vice chairman of the Economic Committee, said the government was yet to present a report to the National Assembly on decreasing the special consumption tax and value-added tax on gasoline.
As a result, the National Assembly will not discuss the issue at the fourth session of the 15th National Assembly, which is set to begin on October 20.
“When the government submits the proposal, the National Assembly’s agencies would consider verifying and submitting it to the National Assembly at the next earliest meeting,” Son said.
The Ministry of Finance has prepared a proposal wherein the special consumption tax on gasoline will be halved and the value-added tax on gasoline and oil will be cut by 20-50%. The proposal has been submitted for review and inputs to the Ministry of Justice.
A representative of the Ministry of Finance said Monday that they had developed a plan that contained different tax reduction measures in the event of gasoline prices rising in the future. It would be submitted to the National Assembly if the government demands it.
The government determines the timing of measures to reduce VAT and excise duty, which is based on closely monitoring gasoline price changes and balancing the budget collection plan, the rep said.
Referring to the recent swings in gasoline prices, Son said that it was an issue under the control of the government, including the ministries of Finance and Industry and Trade.
Since major fluctuations in global gasoline prices would not immediately be reflected in domestic prices, he suggested that that the government initiates adjustments to the retail price management system in a more acceptable manner while protecting the interests of people, enterprises, retailers and importers and exporters.
Since October 3, the petroleum market, particularly in the southern region, has been experiencing supply shortages.
People in the south have had great difficulty getting gasoline in recent weeks with many gas stations running out of fuel or selling restricted quantities as a running battle over commissions with oil companies disrupted supply.
In Ho Chi Minh City, for example, 137 outlets did not have gasoline to sell on October 11.
Supply has also been scarce in other southern localities including the provinces of Binh Duong, Dong Nai, Binh Phuoc, Kien Giang and An Giang.
However, supplies resumed October 12 with authorities guaranteeing there would be enough gasoline for the next 10 days.
