State budget faces deficit as fuel import tax cut down hinh anh 1Illustrative image (Source: VNA)
Hanoi (VNA) – 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, President of the Vietnam Petroleum Association Phan The Rue has said.

Currently, income from fuel import tax accounts for 7 percent of the State budget, he said at a conference in Hanoi on May 16.

Rue said that in order to ensure harmony of State budget income, agencies should carefully calculate a roadmap for raising other taxes.

According to the association, fees and taxes make up more than 50 percent of the fuel price. Therefore, cutting fuel import tax to zero percent necessitates increasing other taxes to make up for the lost income.-VNA