HCMC – The National Assembly (NA) Standing Committee has approved the Government’s proposal to cut the environmental protection tax on fuel from April 1, it was announced at the ongoing ninth sitting of the 15th NA Standing Committee on March 23.
A reduction of 50%-70% on the environmental protection tax on gasoline and oil will be applied until the end of the year, the local media reported.
The tax will be cut by VND2,000 on each liter of gasoline, VND1,000 on each liter or kilogram of diesel oil, heavy fuel, lubricating oil and lubricant grease, and VND700 per liter of kerosene.
After the reduction period, the tax will return to the current VND3,800-VND4,000 on each liter of gasoline and VND2,000 on each liter of oil.
The reduction is aimed at supporting local residents and enterprises to recover and develop after the pandemic, said head of the NA’s Finance-Budget Committee Nguyen Phu Cuong.
With the reduction, revenue from the environmental protection tax on fuel will be cut by an estimated VND29 trillion per year, according to the Ministry of Finance.
Apart from the reduction in environmental protection tax on fuel, the NA told the Government to weigh on reducing the Most-Favored-Nation import tariff on fuel to cushion the volatility in the global fuel prices, helping cut down domestic fuel prices.
In addition, the Government was asked to consider shortening the fuel price adjustment cycle that is currently 10 days to promptly follow global moves and prevent fuel smuggling.