Tax Cut to Keep Petroleum Price Unchanged

 

Circular 48 also revised preferential import taxes on ethanol products (E5 and E10) and biodiesel (B5 and B10) to 20 percent to encourage domestic production and blending of biofuels. The move aimed to keep petroleum prices unchanged, protect consumers’ rights and benefits, as well exercise duties of petroleum traders when environmental protection tax increases from May 1. Circular 48 took effect on April 14, 2015 and matched with Decree 83/2014/ND-CP of the Government on minimum mandatory petroleum reserve of 30 days.

 

The People’s Committee of Da Nang City recently hosted a conference on solutions against tax losses in 2015. Tax losses are reportedly found in hotel, restaurant, online business, private transportation and FDI projects.

 

In 2014, taking advantage of the Government’s loosened policies in the context of economic slowdown, some companies used sophisticated tricks to evade tax, defraud tax and delay tax payment. Besides, the lack of personnel and coordination among authorities in private transportation and market regulation was serious. In the year, Da Nang City recollected VND490.22 billion incurred in 2013 and inspected hundreds of restaurants, hotels and businesses to collect and fine VND37 billion in arrears.

 

Mr Vo Duy Khuong, Vice Chairman of Da Nang People’s Committee, said that in 2015 to address tax loss in the hospitality sector, the local market management agency must coordinate with the Culture, Sports and Tourism Department to intensify inspections of local hotels and restaurants. Those who fulfil tax obligations are popularised on the public media so tourists will choose them for their services. Especially at the high season with many festivals and events, local responsible authorities must work closely together to prevent tax loss.   

At the conference, many argued that, in order to avoid tax loss in the tourism sector, the city needs to install tourist accommodation monitoring software to have more information for inspection.