HCMC – The Ministry of Finance has proposed cutting the environmental protection tax on gasoline by half to VND1,000 per liter and other fuels by 30-70% as the rising fuel prices are weighing on Vietnam’s economy.
The ministry has drafted a resolution for the National Assembly Standing Committee regarding further fuel environmental protection tax reductions aimed at helping the public and the business community cushion the impact of rising domestic fuel prices.
According to the draft resolution, the tax on petrol would fall to VND1,000 per liter from the current VND2,000, jet fuel from VND1,500 per liter to VND1,000, diesel oil from VND1,000 per liter to VND500, and heavy fuel oil and lubricating products from VND1,000 per kg to VND300.
If the National Assembly Standing Committee adopts this resolution in July, these proposed tax rates would be applicable from August 1 until the end of this year.
In late March, the National Assembly Standing Committee approved the Government’s proposal to cut the environmental protection tax on fuels from April 1. The tax on gasoline fell from VND4,000 to VND2,000 per liter; diesel oil, heavy fuel oil and lubricating products from VND2,000 to VND1,000 per kg; and kerosene from VND1,000 to VND300 per liter.
In the newly drafted resolution of the National Assembly Standing Committee, the Ministry of Finance proposed reverting to the previous tax rates as regulated in Resolution 579 adopted by the committee in 2018.
The ministry’s estimates indicated the new round of fuel environmental protection tax cuts would lead to the Government facing lost revenue of VND1.4 trillion per month.