HCMC – The Government has proposed maintaining the environmental protection tax, value added tax and special consumption tax on gasoline, diesel oil and jet fuel at 0% through June 30.
Currently, the environmental protection tax, value added tax and special consumption tax on gasoline (excluding ethanol), diesel and jet fuel are 0% under the prime minister’s Decision 482, which is in force through April 15. Meanwhile, kerosene and heavy fuel oil remain subject to the environmental protection tax of VND600 and VND1,000 per liter or kilogram, respectively, while the VAT is 10%.
The new proposal was presented to the National Assembly (NA) Standing Committee’s session today.
Minister of Finance Ngo Van Tuan said the Government has proposed reducing the environmental protection tax on gasoline, diesel, aviation fuel, kerosene and heavy fuel oil to zero.
According to the Government, the conflict in the Middle East has triggered strong volatility in global energy markets, particularly oil and gas, disrupting supply and leading oil prices to skyrocket.
The impact has spilled over into Vietnam, driving up domestic fuel prices and piling pressure on businesses and households.
According to the Ministry of Industry and Trade, VAT accounts for about 7.4% of the base fuel price, the environmental protection tax makes up 2.7% to 6%, and the special consumption tax represents 6.7%.
Reducing all these taxes to zero through the end of June is therefore seen as a measure to help achieve this year’s socio-economic development targets and control inflation.
The National Assembly Standing Committee has agreed to submit the proposal to the legislature for approval. If passed, the policy would take effect from April 16 through June 30.
