Saturday,  Jul 21, 2018,10:45 (GMT+7) 0 0
Environment tax hike on fuels as yet unapproved
The Saigon Times Daily
Thursday,  Jul 12, 2018,20:34 (GMT+7)

Environment tax hike on fuels as yet unapproved

The Saigon Times Daily

A man is filling his motorbike’s petrol tank at a petrol station in HCMC – PHOTO: THANH HOA

HCMC - Following concerns over the impact of higher environmental protection tax duties on fuels due to inflation, National Assembly (NA) Chairwoman Nguyen Thi Kim Ngan has proposed rejecting the tax hike for now and further considering the issue.

At its 25th meeting, held on July 12, the NA Standing Committee commented on the draft resolution on environmental protection tax.

As presented by Minister of Finance Dinh Tien Dung, the Government has proposed a tax increase of VND1,000 per liter on gasoline, marking a rise from VND3,000 to VND4,000, and an increase of VND500 per liter on diesel oil, rising from VND1,500 to VND2,000.

Meanwhile, the new tax proposed for mazut oil and lubricants is VND2,000 per liter instead of VND900, up by VND1,100.

According to the finance ministry, the proposed higher taxes will affect the consumer price index (CPI) this month, with a rise of 0.27-0.29%. The impact on the entire year’s CPI is projected at 0.11-0.15%.

However, the tax hike will boost the efficient and economical use of energy and natural resources, in addition to encouraging the production and consumption of eco-friendly fuels, such as E5 and E10 gasoline and B5 and B10 diesel.

The higher taxes will also contribute to increasing the budget revenue by some VND15,000 billion per year. This will generate more resources for socioeconomic obligations, including environmental protection.

Assessing the draft resolution, the NA Finance and Budget Committee noted that the CPI increase in the January-June period was already 3.29%, close to the 4% cap assigned by the NA. Besides this, to ensure macroeconomic stability and avoid large impacts on production and the business activities of enterprises, the committee proposed careful consideration of the environmental protection tax hike on fuels.

The committee requested the Government report more clearly on issues such as the tax hike’s impact on the economy, enterprises, people’s lives and the use of additional revenue.

At a six-month review meeting on July 9, Deputy Minister of Industry and Trade Do Thang Hai stressed that the ministry would propose the Government not include the tax hike in fuel prices. Otherwise, there should be a clear roadmap instead of raising the tax by VND1,000 at once.

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