Finance ministry mulls halving import tariff on gasoline

By Quynh Trang   April 24, 2022 | 08:27 pm PT
Finance ministry mulls halving import tariff on gasoline
A worker holds a gasoline nozzle at a station in Hanoi. Photo by VnExpress/Thai Anh
The Ministry of Finance is considering lowering the most favored nation (MFN) import tariff on gasoline from 20 percent to 12 percent.

Cutting the tariff would help diversify Vietnam’s fuel supply and reduce dependency on some suppliers amid the current global disruption, but is not likely to reduce domestic gasoline prices, the ministry said.

Vietnam imported most of its gasoline last year from South Korea and ASEAN countries, which carries a tariff of 8 percent under free trade agreements.

Gasoline imported under MFN rates only accounted for a negligible proportion in 2021.

But the ministry deems the tariff cut necessary, as the four percent difference between MFN and FTA rate would likely encourage importers to seek new suppliers when shortages occur.

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