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Monday, June 17, 2024

Fuel environment tax cut proposed for extension into next year

The Saigon Times

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HCMC – The Ministry of Finance has proposed extending the environment protection tax cut on fuel into 2024 to keep fuel prices stable.

The Ministry of Finance is seeking feedback from relevant ministries and localities on the draft resolution of the environmental protection tax on gasoline, oil, and grease for next year.

Once feedback is collected, the ministry will submit the draft resolution to the National Assembly Standing Committee for consideration. If approved, the environmental protection tax reduction will remain the same as those outlined in Resolution 30/2022, which was approved by the National Assembly Standing Committee.

The Ministry’s proposal is to cut the environmental protection tax by VND2,000 on each liter of gasoline and jet fuel, VND1,000 on each liter or kilogram of diesel oil, heavy fuel, lubricating oil, and lubricant grease, and VND600 per liter of kerosene.

After the reduction, the environmental protection tax would be VND2,000 per liter of gasoline, VND1,000 for jet fuel, diesel oil, heavy fuel oil, lubricating oil, and lubricant grease, and VND600 for kerosene.

Starting from January 1, 2025, the tax rate would be applied in accordance with Resolution 597/2018 of the National Assembly Standing Committee.

Specifically, the tax for gasoline would be VND4,000 per liter; jet fuel at VND3,000 per liter; diesel oil, heavy fuel oil and lubricating oil at VND2,000 per liter; kerosene at VND1,000 per liter; and lubricant grease at VND2,000 per liter.

The reduction of the environment protection tax is expected to keep local fuel prices stable in the year to come, thereby helping to curb inflation and ensure macroeconomic stability, as stated by the ministry. Due to the cut, tax revenue from fuel is estimated to contract by VND38,929 billion per year, said the ministry.

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