With the tax reduced to 0%, gas prices decreased by 16,000 VND per cylinder.
On the afternoon of March 2nd, major gas distribution companies announced that the price of each gas cylinder would decrease by 16,000 - 17,000 VND starting tomorrow, March 3rd. The price reduction is due to the Ministry of Finance adjusting the import tax rate on this commodity from the current 5% to 0%.
Brands have announced price reductions and confirmed withSaigon Economic Times onlineCurrently, the participating companies include PV Gas, SP, Vinagas, Sopet, Petrolimex Gas, and Pacific. The price reduction applied is 16,000 VND per 12kg cylinder (Pacific's reduction is 17,000 VND per cylinder) compared to the current price. The maximum retail price of gas for consumers will therefore be around 460,000 - 464,000 VND per 12kg cylinder.
Finally, the Ministry of Finance decided to reduce import taxes on gas so that gas distributors could lower retail prices for consumers. Photo: Le Toan.
Meanwhile, a representative from Shell Gas stated that they have not yet decided on the price reduction amount due to delays in calculations following the late notification from the Ministry of Finance, but the intention is to reduce prices for consumers at a reasonable level, equivalent to the reduction in import tax. Information regarding Shell Gas's price reduction will be released tomorrow.
According to representatives of gas companies, the current price reduction is due to the Ministry of Finance's decision on March 2nd to reduce the import tax on gas by 100%, from 5% to 0%. This provides the basis for lowering input costs, which allows companies to adjust retail prices accordingly.
"The Ministry of Finance's circular took effect from the date of signing, March 2nd, and the ministry also requested businesses to reduce prices immediately, but because the decision was issued late in the afternoon, we were unable to comply."
"The new price can only be applied from tomorrow. Goods that have already been sold cannot be returned," added Mr. Tran Van Nghi, Deputy General Director of PV Gas South, a subsidiary of the Southern Gas Corporation.Saigon Economic Times online.
As reported by businesses, on the afternoon of March 2nd, the Deputy Minister of Finance, Ms. Vu Thi Mai, signed Circular No. 37/2012/TT-BTC allowing the adjustment of the preferential import tax rate for certain petroleum gas (gas) and other hydrocarbon gases under group 2711 in the Preferential Import Tariff Schedule from the current 5% to 0%.
This decision has been anticipated by major gas distributors for over a month, as world gas prices continuously rose in February and March. In early February, when the contract price (CP) for gas increased to US$1,025/ton, the Vietnam Gas Association...
However, by the end of February, when the CP price was announced to increase by an additional US$180/ton, pushing world gas prices up to US$1,205/ton, the Ministry of Finance had still not made a decision on the matter, forcing companies to raise prices by VND 50,000-52,000 per 12kg gas cylinder. Two days after the new price, fluctuating around VND 470,000-480,000 per cylinder – the highest in history – was implemented, the Ministry of Finance finally decided to reduce taxes as expected by businesses and consumers.
In parallel with Circular 37 on tax reduction, Mr. Nguyen Tien Thoa, Director of the Price Management Department - Ministry of Finance, also signed công văn 2817/BTC-QLG addressed to major gas trading enterprises, requesting an immediate reduction in domestic gas prices and directing general agents, dealers, and retail stores within the system to reduce prices correspondingly to the reduction in import tax rates on gas. The implementation period starts from the date the tax reduction circular takes effect.
In addition, the Director of the Price Management Department also requested the finance departments of provinces and centrally-administered cities to take the lead and coordinate with the Market Management Department to monitor the implementation of the above requirements. If businesses fail to comply, the finance departments will handle the matter and report to the competent authorities for handling in accordance with current legal regulations.
According to the Economic Times