The Ministry of Finance proposes to reduce excise tax and VAT on gasoline

After the environmental protection tax, the Ministry of Finance has submitted to the Prime Minister to further reduce the excise tax and VAT to control gasoline prices.

This information has just been shared by a representative of the Ministry of Finance on the morning of June 30. But this position has not disclosed the details of the specific reduction with the above taxes.

Although the specific plan has not been announced, this is also a move to recognize the more drastic action of the Ministry of Finance to cool down domestic gasoline prices.

The retail price of gasoline and oil is escalating and has increased by 65-70% compared to the end of last year, which is weighing heavily on the lives of people and businesses. In this context, people and experts both expect to reduce taxes and fees on gasoline.

Recently, the Ministry of Finance has also proposed to reduce the environmental protection tax bracket to the floor level for gasoline and oil. However, the additional reduction of 1,000 VND (gasoline) and 500 VND (oil), according to experts, is still too small and no longer effective like the tax reduction 3 months ago. Therefore, according to experts, further reduction of other taxes such as excise and value added (VAT) is necessary at this time.

The estimated proportion of taxes and costs per liter of gasoline is adjusted from June 21. Graphics: Ta Lu

Currently, four types of taxes are levied on each liter of gasoline and oil, including: 10% import tax; excise tax (petrol RON 95 is 10%, E5 RON 92 is 8%, no tax on oils); environmental protection tax (1,900-2,000 VND for gasoline; 1,000 VND per liter for oil) and value added tax (VAT) 10%.

In addition, the retail price also has a profit of 300 VND per liter of petrol and oil and a fixed cost of 1,050-1,250 VND per liter of gasoline; 600-950 VND per liter, kg depending on the type of oil.

In general, each liter of gasoline and oil is “carrying” about 34-35% of taxes and expenses in the retail price structure, depending on the time. That is, for every liter of gasoline, one-third is what consumers have to pay for taxes and expenses.

Quynh Trang


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