Binh Son petitions MoF to increase import tax of E5
Binh Son petitions MoF to increase import tax of E5
The Tax Policy Department under the Ministry of Finance is considering a plea submitted by Binh Son Refining and Petrochemical Company Limited (BSR) to raise import tax on E5 bio fuel.
According to the BSR, currently the import tax on E5 bio fuel and RON gasoline is five per cent and 27 per cent, respectively. As a result, the companies, which buy 95 per cent of RON 92 and mix it with five per cent of Ethanol to produce E5 bio fuel domestically, will generate products that will cost more than the imported one.
Therefore, the BSR warns that E5 bio fuel sale will face difficulties in the coming time since the current tax policy only encourages import of the fuel rather than encouraging domestic production. It has proposed to the ministry to increase the import tax to support and stimulate the production of E5 fuel within the country to ensure itinerary for bio fuel use issued by the government.
The E5 fuel was sold for the first time in Viet Nam in 2010. In 2011, the government came up with a policy to use E5 bio fuel, replacing the traditional A92 gasoline.
The BSR said that it had sold more than 22,800 cubic metres of E5 bio fuel by the end of November.
