The Ministry of Finance proposes to reduce the environmental protection tax on gasoline and oil to 1,000 VND – the floor level of this tax – until the end of this year.
The Ministry of Finance has just consulted on the draft Resolution of the National Assembly Standing Committee on environmental protection tax for gasoline, oil and grease. Accordingly, this tax on gasoline will be reduced from 2,000 VND to a floor level of 1,000 VND per liter. To users, the price of gasoline will be reduced by 1,100 VND per liter (including VAT).
|Environmental Protection tax||Offer||Old|
|Gasoline (per liter)||1,000 VND||2,000 VND|
|Flight fuel (per liter)||1,000 VND||1,500 VND|
|Diesel (per liter)||500 VND||1,000 VND|
|Fuel oil, lubricating oil||300 VND||1,000 VND|
|Grease (per kg)||300 VND||1,000 VND|
|kerosene||300 VND||300 VND (Floor level)|
If the Resolution is issued in July this year, the Ministry of Finance proposes to take effect from the beginning of August.
Assessing the impact of tax reduction, the Ministry of Finance said, the state budget is estimated to reduce the average monthly revenue (including VAT) about 1,400 billion VND. This estimate is based on the consumption of gasoline, oil and grease in 2022, which is expected to be equivalent to before the Covid-19 epidemic (in 2019). If the tax reduction officially takes effect from the beginning of August, the whole year, the budget is expected to reduce revenue by about 7,000 billion VND.
From April 1 of this year, the environmental protection tax on gasoline and oil has also been reduced by 50% until the end of the year. Environmental protection tax accordingly is 2,000 VND per liter of gasoline and 1,000 VND for diesel, madut, lubricants (excluding VAT)…
The reduction of environmental protection tax in the context of high gasoline prices is a necessary solution to reduce retail gasoline prices for people, contributing to cooling down inflation.
In addition to reducing environmental protection tax, at a recent questioning session at the National Assembly, delegates also asked to further reduce special consumption taxes, import taxes, VAT … when gasoline prices are consecutive. record. Finance Minister Ho Duc Phuc said he would assess the impact to advise the Government and submit to the National Assembly Standing Committee and the National Assembly to further reduce taxes on this item.
This policy, according to National Assembly Chairman Vuong Dinh Hue, nationwide voters are waiting very much, so it is recommended that the Ministry of Finance make specific proposals for competent authorities to decide. Tax issues fall under the authority of the National Assembly Standing Committee, according to him, and also need advice and recommendations from the Ministry of State management. He also noted that in the base price structure of petrol and oil, in addition to tax, there are also normative costs, normed profits… which can be considered for reduction.