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Wednesday, July 24, 2024

VCCI proposes abolishing excise tax on gasoline

The Saigon Times

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HCMC – The Vietnam Chamber of Commerce and Industry (VCCI) has proposed the Ministry of Finance consider abolishing the special consumption tax on gasoline to cushion the impact of the steep global fuel price rises.

Tax reduction is a good solution, but eliminating the special consumption tax on gasoline should be considered a necessary measure to reduce the negative impact of global fuel price surges in the long term, said VCCI.

Experts believed that it was not reasonal to impose a special consumption tax on gasoline. Gasoline is an essential consumer product and widely used in production and daily life, while this tax should only be levied on non-essential goods to discourage consumption, such as cigarettes, alcoholic beverages and luxury cars.

Currently, fuel is subject to four taxes, namely import, environmental protection, special consumption and value added taxes. The special consumption tax on fuel is 10%.

Previously, the Ministry of Finance asked for feedback on a draft resolution of the National Assembly on halving both the special consumption tax and the value added tax on fuel, receiving firm support from the VCCI.

According to the draft resolution, the excise tax and value added tax would be reduced by 50% and 20-50%, respectively, based on the decision of the National Assembly and the actual conditions. The tax reduction period is expected to last six months from the effective date of the resolution.

The Ministry of Finance estimated that state budget revenue would drop by VND7.5 trillion to VND12 trillion due to the reduction of the two fuel taxes in six months.

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