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Tuesday, June 18, 2024

MoF proposes VAT and special consumption tax cuts on fuels

By Le Hoang

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HCMC – The Ministry of Finance (MoF) on September 23 proposed cutting special consumption tax and value added tax on fuels by up to 50%.

If the proposal is approved, bio-fuel E5 RON 92 gasoline will decline by VND1,700 to VND20,531 per liter, RON95-III gasoline by VND1,921 to VND21,294 per liter and diesel oil by VND1,099 to VND23,081 per liter.

The special consumption tax on gasoline will drop from 10% to 5%, E5 gasoline from 8% to 4% and E10 gasoline from 7% to 3%. Value added tax on fuels will decrease from 10% to 5%.

The tax cuts will take effect in six months.

According to the ministry, tax collection would fall by some VND2 trillion a month and up to VND12 trillion, with the average consumer price index 0.1%-0.15% lower if the new tax rates are in place for six months.

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