Vietnam plans cuts in fuel taxes as inflation rises | Inquirer Business

Vietnam plans cuts in fuel taxes as inflation rises

/ 06:51 PM September 23, 2022

HANOI  – Vietnam’s finance ministry on Friday said it is proposing to the legislature cutting the special consumption tax and value-added tax on fuels to keep inflation under 4 percent this year.

The move will follow this week’s decision by the central bank to raise policy rates and several previous cuts in taxes on fuels since March, including the environment tax and Most Favored Nation tariff.


The finance ministry is proposing two scenarios for the cuts, either a 50-percent cut in special consumption tax and a 20-percent cut in value-added tax or a 50-percent cut in both the taxes, it said in a statement.

According to the ministry, tax collection would be reduced by 7.4-12.2 trillion dong ($312.24-$514.77 million), with the average consumer price index 0.1 percent-0.15 percent lower if the new tax rates are in place for six months from November.


Vietnam, a regional manufacturing hub, reported gross domestic product growth of 7.72 percent in the second quarter this year, but like many of its neighbors, it is facing mounting inflationary pressure as prices of food and energy rise across the world.

($1 = 23,700 dong)

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: fuel, Inflation, tax cut, Vietnam
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2022 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.