Under the proposal, the environmental protection tax on petrol (excluding ethanol), diesel, aviation fuel, kerosene and mazut will be reduced to zero Vietnamese dong per litre. These products will also be exempt from VAT declaration and payment while still allowing input VAT credit.
The retail prices of oil and petrol recorded another increase as of 15:00 on June 13 following the latest adjustments made by the Ministry of Finance, and the Ministry of Industry and Trade.
Domestic prices of E5 RON 92 and RON 95 have reached all time high after both ministries decided to raise their retail prices by nearly VND1,500 per litre starting from 04pm on October 26.
Vietnam imported petroleum mainly from the ASEAN and South Korea in the first seven months of 2017, which together accounted for 90 per cent of the imports.