The Prime Minister agrees to the collection of back taxes on gasoline and diesel fuel.

The Petroleum Association argues that the retroactive tax collection based on the Ministry of Finance's document is contrary to current law, causing not only economic losses but also damaging the reputation of all petroleum import businesses.

Reporting to the Prime Minister at the 2014 Prime Minister's Conference with Businesses on the morning of April 28th, Mr. Phan The Rue, Chairman of the Vietnam Petroleum Association, raised the issue: The Ministry of Finance issued a document demanding the retroactive collection of import taxes on petroleum products for shipments transferred from temporary import for re-export to domestic consumption, amounting to nearly 400 billion VND according to document No. 17060 dated December 7, 2012. The requirement for businesses to declare new customs declarations to replace the old ones is contrary to regulations.

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"The Department of Legal Document Review (Ministry of Justice) has officially sent a letter to the Ministry of Finance affirming that the retroactive collection of taxes from petroleum import businesses has no legal basis and recommending the cancellation of Official Letter No. 17060."

"Issuing regulations that violate current laws not only causes economic losses but also affects the reputation of all petroleum import businesses, especially the eight petroleum import businesses, including six state-owned enterprises and two newly established businesses from other economic sectors that are still facing difficulties," Mr. Ruệ affirmed.

Mr. Ruệ expressed his frustration: After the Petroleum Association sent numerous letters to the Government Office, the Ministry of Finance, and other agencies, the Ministry of Finance still maintained that its tax collection was in accordance with the law, but failed to provide any convincing legal basis, leading the Petroleum Business Association to continue petitioning relevant agencies.

For that reason, the Chairman of the Petroleum Association proposed to the Prime Minister: Request the Ministry of Finance to revoke the tax collection decision under document No. 17060 dated December 7, 2012. At the same time, handle the collected tax amounts from the enterprises according to current laws. According to Mr. Ruệ, only by doing so will the legitimate rights of the enterprises, including the six state-owned enterprises, be ensured.

Responding to this issue, Minister of Finance Dinh Tien Dung said: The Ministry of Finance has sent two written responses to the Vietnam Petroleum Association and has reported to the Prime Minister. The Prime Minister has also agreed with the Ministry of Finance's approach to collecting back taxes on petroleum products.

Minister Dinh Tien Dung also stated: According to regulations on customs procedures, in cases where the type of import or export changes, a different customs declaration form can be used.

According to document 240 dated August 13, 2013, from the State Audit Office: As stipulated in Decree 154, when changing the type of import/export from temporary import/re-export to domestic consumption, enterprises are allowed to open a new customs declaration, and the tax calculation time and tax rate will be calculated at the time of registering the new declaration.

The State Audit Office determined the tax payable on temporary import declarations of petroleum products transferred for domestic consumption in 2012 according to the regulations in Decree 154. Minister of Finance Dinh Tien Dung added, "We request the General Department of Customs to direct local customs units and the Post-Clearance Inspection Department to coordinate, inspect, and review the temporary import declarations of petroleum products transferred for domestic consumption in 2012. We request that the decision to collect back taxes be processed based on the audit results."

According to Infonet