Prime Minister agrees to collect additional gasoline tax

The Petroleum Association believes that the tax collection according to the document of the Ministry of Finance is not in accordance with current law, not only causing economic losses but also affecting the reputation of all petroleum importing enterprises.

Reporting to the Prime Minister at the 2014 Prime Minister's Conference with Enterprises on the morning of April 28, Mr. Phan The Rue, Chairman of the Vietnam Petroleum Association, raised the issue: The Ministry of Finance has issued a document to collect import tax on petroleum for shipments transferred from temporary import for re-export to domestic consumption, with an amount of nearly 400 billion VND according to document No. 17060 dated December 7, 2012, requiring enterprises to declare a new customs declaration to replace the old customs declaration, which is contrary to regulations.

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“The Department of Inspection of Legal Documents (Ministry of Justice) officially sent a dispatch to the Ministry of Finance affirming that the collection of additional taxes from gasoline and oil importing enterprises has no legal basis and recommended the cancellation of Official Dispatch No. 17060.

Making regulations that are not in accordance with current laws not only causes economic losses but also affects the reputation of all petroleum importing enterprises, especially the eight petroleum importing enterprises, including six state-owned enterprises and two newly established enterprises from other economic sectors that are still facing many difficulties," Mr. Rue affirmed.

Mr. Rue was upset: After the Petroleum Association sent many official dispatches to the Government Office, the Ministry of Finance and other agencies, the Ministry of Finance still claimed that its tax collection was in accordance with the law, but did not specify any legal basis that could convince businesses, causing the Petroleum Association to continue to petition relevant agencies.

For that reason, the Chairman of the Petroleum Association recommends to the Prime Minister: Request the Ministry of Finance to withdraw the decision to collect tax arrears according to document No. 17060 dated December 7, 2012. At the same time, handle the tax amount collected from enterprises according to current law. According to Mr. Rue, if this is done, the legitimate rights of enterprises, including 6 state-owned enterprises, will be guaranteed.

Responding to this issue, Minister of Finance Dinh Tien Dung said: The Ministry of Finance has twice responded in writing to the Vietnam Petroleum Association and reported to the Prime Minister. The Prime Minister also agreed with the Ministry of Finance's handling of the collection of petroleum tax arrears.

Minister Dinh Tien Dung also said: According to regulations on customs procedures, in case of changing the type of import or export, another customs declaration can be used.

“According to document 240 dated August 13, 2013 of the State Audit: According to the provisions of Decree 154, when changing the type of export or import from temporary import for re-export to domestic consumption, enterprises are allowed to open a new declaration and the time of tax calculation and tax rate will be calculated at the time of registration of the new declaration.

The State Audit determined that taxes must be paid on declarations of temporary import of petroleum for domestic consumption in 2012 according to the provisions of Decree 154. The General Department of Customs is requested to direct local customs units and the Post-clearance Inspection Department to coordinate, inspect and review declarations of temporary import of petroleum for domestic consumption in 2012. The decision to collect additional taxes will be handled according to the audit results," Finance Minister Dinh Tien Dung added.

According to Infonet