The Vietnam Gas Association has called on the government and the Ministry of Finance to cut the import tariff slapped on cooking gas from 5 percent to 2 percent, VGA chairman Nguyen Si Thang said Thursday.

The move was made in a bid to reduce the current rising domestic cooking gas prices, which have recently skyrocketed to around to VND425,000-464,280 (roughly US$22) a 12-kilogram cylinder, Thang told Tuoi Tre.

“Each 12-kg cylinder will be sold for VND7,000 lower than the current prices if our proposal is green-lighted.”

Meanwhile, some gas suppliers in Ho Chi Minh City said if the import tax is lowered to 2 percent, retail prices can be reduced by VND8,000-10,000 a cylinder.

Earlier, the import tariff was hiked up from 2 percent to 5 percent, and has been applied since January 1, 2012.

VGA also said it will ask its members to guarantee the reduction of retail prices once the tax has been cut.

“Global price has surpassed the record high of $1,000 a ton, yet is expected to fluctuate even further,” Thang said.

For his part, Luu Duc Huy, deputy head of the Tax Policy Agency under the Ministry of Finance, said the ministry will consider the proposal, and will “soon handle the case if [the proposal] is reasonable.”

“Tax management in 2012 is aimed at boosting price stabilization and curbing inflation,” Huy said.

In related news, the HCMC authorities have recently imposed financial fines on two local gas suppliers for violating the price registering regulation.

Dai Viet Gas and Than Tai Gas have increased their retail prices without registering with the municipal Department of Finance, Nguyen Quoc Chien, head of the agency in charge of pricing under the department, told Tuoi Tre.

“These two suppliers will be fined VND10-30 million each,” Chien said.

(Source: Vietnamnet)