The remaining amount in 12 private enterprises is only about 254 billion VND, not the difference of up to 3,500 billion VND as some information has stated.

At the regular government meeting in March (morning of March 26), the Prime Minister reported on the 2015 tax refund of 23 key petroleum trading enterprises, which according to some newspapers were "pickpocketing" 3,500 billion VND from the people. Minister Dinh Tien Dung said that he would inspect and check to have specific data and a solution.

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However, according to Minister Dinh Tien Dung, after a preliminary review, the figures reported by the press are not accurate. According to statistics, the total amount of imported gasoline tax collected in 2015 was 35,000 billion VND and the total amount of tax refunded by 23 key trading enterprises in 2015 as of March 24 was 3,475 billion VND. Of which, the value added tax (VAT) was 335 billion VND, this is the amount that is refunded, not reducing the total revenue of the budget because refunds at the import stage must be paid more at the consumption stage. Therefore, the actual amount of import tax refund and special consumption tax (SCT) remaining is 3,120 billion VND. Of which, 2,794 billion VND is from 11 state-owned enterprises, accounting for 88% of the market share of gasoline consumption and 325 billion VND from private enterprises (12% of the market share).

With a total of 3,120 billion VND of 23 enterprises, after accounting for income and declaring and paying corporate income tax to the state budget, it is 668 billion VND (at a tax rate of 22%). The remaining amount is 2,434 billion VND, of which 11 state-owned enterprises are 2,179 billion VND, after setting aside funds according to the law, it has been paid to the state budget according to the National Assembly's Resolution. "Thus, the remaining amount in 12 private enterprises is only about 254 billion VND, not a difference of up to 3,500 billion VND as some information has stated" - Minister Dinh Tien Dung affirmed.

Minister Dinh Tien Dung also affirmed that he will continue to inspect, examine and report to have a solution according to the law and frankly acknowledge the industry's responsibility in managing gasoline prices. "If we are wrong, we will accept responsibility, and if we are wrong, we will correct it, not blaming each other because that will not solve any problem," said Minister Dinh Tien Dung.

According to Decree 83 of the Government, the selling price of gasoline and oil is implemented according to the market mechanism, under the management of the State, and adjusted by the base price under the responsibility of the Ministry of Industry and Trade and the Ministry of Finance.

After listening to the report of the Minister of Finance, Prime Minister Nguyen Tan Dung requested to clarify this information so that people can understand.

“In the process of operating and integrating, tax rates are different. When we discovered the problem of calculating the base price, we chose to calculate it according to the weighted average price. From now on, we need to answer and explain publicly and transparently so that people understand and experts understand how the weighted average calculation benefits consumers. Regarding tax refunds, we need to clarify the amount paid to the budget according to the National Assembly Resolution, the remaining amount in private enterprises, if collected, must be in accordance with the law,” the Prime Minister requested.

New basic gasoline price tax benefits consumers

By determining import tax to calculate the basic price of gasoline and oil by the weighted average method, the interests of consumers will be more guaranteed. The tax rate for calculating gasoline prices was previously 20%, now according to the weighted average method, it will be reduced to approximately 18%.

At the regular meeting of the Government on March 26, Minister of Finance Dinh Tien Dung reported specifically on issues related to the management of gasoline prices as well as gasoline import tax, which have been of public concern recently.

Explaining the information about the difference between preferential import tax on gasoline and the tax rate determining the retail price of gasoline, Minister Dinh Tien Dung said that currently, imported gasoline is subject to import tax and special preferential import tax according to commitments in free trade agreements. Depending on specific conditions and regions, these import tax rates are different. Specifically, in ASEAN countries, the import tax on gasoline is 20%, kerosene, jet fuel, diesel and fuel oil is 0% from 2016 onwards. In the Vietnam - Korea Agreement, the tax on gasoline is 10% from December 20, 2015, diesel, kerosene, jet fuel is 5%, fuel oil is 0%. Meanwhile, according to the ASEAN - China Agreement, the import tax on gasoline is 20%, oil products are 5, 8 and 10% from 2016.

With such different tax rates since the beginning of 2016, using a preferential import tax rate to calculate the base price of gasoline and oil is no longer appropriate. Therefore, the Ministry of Finance has recently proposed that the Government apply the tax rate to calculate the base price as a weighted average of preferential import tax rates, based on actual imported goods each quarter, using data from the previous quarter to calculate the following quarter. At the same time, to reduce the difference in import tax between import sources, the Ministry of Finance issued Circular 48 reducing the preferential import tax on oil from 13% to 7%, and gasoline remains at 20%.

According to Minister Dinh Tien Dung, this weighted average calculation method will better ensure consumer rights. The previous tax rate for calculating gasoline prices was 20%, if using the weighted average method, it will be reduced to 18.08%. For oil, the tax rate was 7% at the old rate, now it has been sharply reduced to 0.6%. Also with the current price management method, Vietnam's gasoline prices are the 27th lowest out of 180 countries in the world and lower than many countries in the region. "The lower the gasoline price, the better for consumers and the economy, but it must also ensure a balance and harmony of interests between the State, enterprises and people," said Minister Dinh Tien Dung./.

According to VOV