The Ministry of Industry and Trade proposes to halve the environmental tax on gasoline


The Ministry of Industry and Trade proposed to reduce the environmental tax by 2,000 VND per liter of gasoline, 1,000 VND for oil, double the proposed level of the Ministry of Finance.

Commenting with the Ministry of Finance on March 9, the Ministry of Industry and Trade proposed to increase the reduction of environmental protection tax higher than the expected level proposed by the Ministry of Finance.

Items Current environmental protection tax proposed by the Ministry of Finance proposed by the Ministry of Industry and Trade
Gasoline (except ethanol) 4,000 won 3,000 won 2,000 won
Diesel, mazut, greasy 2,000 won 1,500 yen 1,000 yen
kerosene 1,000 yen 500 500
Grease 2,000 won 1,500 yen 1,000 yen

Unit: VND

According to the Ministry of Industry and Trade, the sharp reduction in taxes is to have room to manage and stabilize domestic gasoline prices when world prices rise sharply, adversely affecting the lives and production of people, businesses, and targets. overall recovery of the economy after the pandemic.

This proposal level of the Ministry of Finance was criticized by businesses and associations as too low and not meaningful. VCCI also proposes to increase this tax reduction to 50% of the applicable rate, VND 1,000 per liter of oil; 2,000 VND per liter of gasoline.

Gas station on the corner of Ly Chinh Thang street – Truong Dinh, District 3, February 2022. Photo: Quynh Tran

Oil prices on the world market continued to fluctuate, with armed conflicts between Russia and Ukraine leading to US and EU sanctions against Russia, causing a supply shortage while demand was growing strongly because of the country implements economic recovery measures.

On March 9, the price of crude oil on the world market rose to the level of WTI oil at 125.68 USD per barrel, Brent oil at 130.53 USD per barrel and continued to have complicated movements. The price of petroleum products has accordingly increased to USD 142-158 per barrel, an increase of USD 51-69 compared to the first day of January this year.

According to the Ministry of Industry and Trade, this price will have a great impact on the domestic gasoline price. The operating period on March 11 may increase by 5,000-8,000 VND per liter, depending on the type, equivalent to an increase of 27-44% compared to the previous year. gasoline prices in early 2022. This may greatly affect the overall CPI of the country in 2022.

Currently, the stabilizing tool is the Petroleum Stabilization Fund, which is currently not much, about VND 620 billion, while the balance of this fund at many key enterprises is negative.

Hoai Thu