Viet Nam has reduced import taxes on oil and petroleum products to match its free trade agreements with other countries and organisations. — VNS Photo Thai Ha

HA NOI (Biz Hub) — Viet Nam continued reducing import taxes on oil products, beginning April 4, according to the Ministry of Finance.

Under the ministry' latest circular, issued on April 27, import tariffs on diesel and fuel oil dropped by 8 and 12 per cent to 12 and 13 per cent, respectively.

Meanwhile, import taxes levied on other products, including petroleum, kerosene and jet fuel, were kept unchanged at 20 per cent for petroleum and kerosene, and 10 per cent for jet fuel.

This is the second time this year that Viet Nam cut import tariffs on oil products.

Meanwhile, a representative from the Finance Ministry said the adjustment of import tariffs was aimed at preventing an increase in domestic oil prices when the country tripled the environmental protection fees on petroleum products beginning in May this year.

Under the new regulation, the environmental protection fee will be raised to VND3,000 from VND1,000 for petroleum and jet fuel, respectively, and to VND900 to 1,500 per litre for diesel and fuel oil, respectively.

The reduction was made as part of Viet Nam's roadmap to cut preferential import taxes on oil and petroleum products, which is in line with the country's commitment to the ASEAN Trade in Goods Agreement (ATIGA), the ASEAN-China Free Trade Area (ACFTA) and ASEAN-Republic of Korea Free Trade Agreement (AKFTA). — VNS