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State budget faces deficit as fuel import tax cut down

Special consumption tax must be adjusted to avoid a serious budget deficit when fuel import tax is cut in line with various trade agreements Vietnam has signed.
State budget faces deficit as fuel import tax cut down ảnh 1Illustrative image (Source: VNA)
Hanoi (VNA) – Specialconsumption tax must be adjusted to avoid a serious budget deficit when fuelimport tax is cut in line with various trade agreements Vietnam has signed,President of the Vietnam Petroleum Association Phan The Rue has said.

Currently, income from fuelimport tax accounts for 7 percent of the State budget, he said at a conference inHanoi on May 16.

Rue said that in order to ensureharmony of State budget income, agencies should carefully calculate a roadmap forraising other taxes.

According to the association,fees and taxes make up more than 50 percent of the fuel price. Therefore, cuttingfuel import tax to zero percent necessitates increasing other taxes to make up for thelost income.-VNA
VNA
#State budget #Vietnam Petroleum Association #fuel price #fuel import tax #zero percent tax #special consumption tax #budget deficit #Phan The Rue
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