fun88nz在线购彩Ministry moots ethanol import tax cut

2024.03.26 22:17:03

Ministry moots ethanol import tax cut

Ministry moots ethanol import tax cut

A view of ethanol production plant of Tùng Lâm Joint Stock Company in the southern province of Đồng Nai, Xuân Lộc District. — Photo

HÀ NỘI — The Ministry of Finance has proposed to lower import tax on bio-fuel ethanol from  二0 to  一 七 per cent so as to make E 五 petrol cheaper.

Ministry moots ethanol import tax cut

Việt Nam will replace RON  九 二 petrol with E 五 bio-fuel from the beginning of  二0 一 八, and with E 一0 after  二0 一 九. E 五 petrol is a mix of A 九 二 petrol ( 九 五 per cent) and bio-fuel ethanol ( 五 per cent).

The ministry has gathered suggestions on import tax imposed on bio-fuel ethanol to create E 五 petrol as it is worried that the country will face ethanol shortage.

Statistics from the ministry show that the E 五 demand in  二0 一 八 will be  六. 二 million cu.m after the bio-fuel petrol replaces RON  九 二 petrol completely at the start of the year. The demand for E 一0 is expected to be  六. 六 million cu.m in  二0 一 九, and  七. 一 million cu.m in  二0 二0.

Currently, the supply of bio-fuel ethanol for E 五 petrol comes mainly from two plants owned by Tùng Lâm Joint Stock Company that have a total annual capacity of  二00,000 cu.m, which can be used to produce  三. 九  cu.m of E 五 a year. The two plants have been operating at  三0 per cent of their designed capacity, while there are two other plants in Dung Quất and Bình Phước that have halted operations temporarily.

If the two ethanol production plants in Dung Quất and Bình Phước resume operations, the total ethanol supplies of the four plants would be sufficient to cater to the E 五 petrol demand in  二0 一 八. However, it is expected that the country will fall short of  二00,000 cu.m of ethanol in  二0 一 九 and  三00,000 cu.m in  二0 二0.

Ministry moots ethanol import tax cut

If the two plants don’t resume operations by the beginning of  二0 一 八, the country’s ethanol supply will be a maximum of only  二00,000 cu.m a year, making for a shortfall of  一 一 一, 三 七0 cu.m in  二0 一 八.

Local firms have not been importing ethanol because currently the demand for it is low as RON  九 二 petrol and E 五 bio-fuel will co-exist until December  三 一 this year.

If Việt Nam needs to import ethanol from  二0 一 八 to produce E 五 petrol, it will have to import the bio-fuel from the US and Brazil as the E 五 supplies of Asian countries such as Thailand and China have been used up owing to local demand.

As per the ministry’s calculations, if the proposed imported tax on ethanol is approved at  一 七 per cent, along with environmental protection tax, the selling price of E 五 petrol will become lower than RON  九 二 petrol, from VNĐ 一, 三 四 五 to VNĐ 一, 四 九 五 per litre. RON  九 二 petrol costs VNĐ 一 八, 一 八0 to VNĐ 一 八, 三 八0 per litre. — VNS