Excise tax on gasoline should not be abolished

VCN - The Ministry of Finance said that the collection of green tax on gasoline is in line with the objectives of the excise tax and international practices.
Increase in Excise Tax: Shifting to Compound Tax system appropriate direction Increase in Excise Tax: Shifting to Compound Tax system appropriate direction
Facilitating customs clearance for petroleum Facilitating customs clearance for petroleum
Most ministries agree to reduce the excise tax on gasoline and VAT on petrol and oil Most ministries agree to reduce the excise tax on gasoline and VAT on petrol and oil
The Ministry of Finance said that the collection of excise tax on gasoline is in line with the objectives of the excise tax and international practices. Photo: Internet
The Ministry of Finance said that the collection of excise tax on gasoline is in line with the objectives of the excise tax and international practices. Photo: Internet

Responding to voters' proposals sent before the 4th and 2nd Extraordinary Sessions of the 15th National Assembly on reducing and abolishing the excise tax on gasoline, the Ministry of Finance said, the Law on Special Consumption Tax stipulates the collection of excise tax on gasoline of all kinds, the non-collection of excise tax on oil and does not stipulate tax reduction or exemption for goods and services subject to excise tax.

The excise tax rate on gasoline is 10%, E5 bio-fuel 8% and E10 bio-fuel 7%.

The Ministry of Finance also said that excise tax is a tax levying on goods and services which are not supported by the State for consumption (cigarette, alcohol, beer), and should be consumed sparingly (fossil-based gasoline) and groups of goods and services consumed by high-income people (cars, planes, yachts, golf).

Further, gasoline is a fossil-based, non-renewable fuel that needs to be used sparingly, so most countries (France, Germany, Italy, the UK, South Korea, Australia, Thailand, Singapore, China, Cambodia, and Laos) all levy excise tax on gasoline.

In addition, in the context of environmental pollution and climate change being global issues, the Vietnamese Government's commitment at COP26 to achieve "zero" net emissions by 2050, thus, Vietnam's introduction of gasoline into the subject of excise tax from 1995 is consistent with the objectives of the excise tax and international practices, while the adjustment of the excise tax rate according to voters' proposals is under the authority of the National Assembly, according to the Ministry of Finance.

Previously, at the 4th session of the 15th National Assembly, the Ministry of Finance submitted to the National Assembly a plan to reduce excise tax on gasoline and value-added tax on gasoline and oil.

However, on November 11, 2022, the National Assembly Standing Committee had a report on the reception, explanation and assessment of the state budget management in 2022 and the state budget estimate for 2023. According to the report, the forecast of the world crude oil price trend in 2023 is lower than in 2022. Besides, along with positive domestic macroeconomic indicators, it is not really necessary to design a "backup" mechanism in gasoline price management through the excise tax and value-added tax.

In addition, in 2023, in addition to measures to regulate the domestic petroleum market, there is still room to use the green tax tool as it did in 2022. Therefore, the National Assembly Standing Committee asks the National Assembly for permission not to add this content to the draft Resolution.

Based on the opinion of the National Assembly Standing Committee and the socio-economic context, the Ministry of Finance reported to the Prime Minister for permission to stop the formulation of the National Assembly's resolution project on reducing excise tax on gasoline and value-added tax on gasoline and oil.

At the same time, the Ministry submitted to the Government and the National Assembly Standing Committee for promulgation Resolution No. 30/2022/UBTVQH15 on environmental protection tax rates for gasoline, oil and grease. Accordingly, from January 1, 2023 to the end of December 31, 2023, the environmental protection tax rate for gasoline (except ethanol) is 2,000 VND/liter; jet fuel is 1,000 VND/liter; diesel oil is 1,000 VND/liter.

Prices of imported gasoline decrease by more than VND4 million/ton Prices of imported gasoline decrease by more than VND4 million/ton

Regarding supply stabilization, Decree No. 95/2021/ND-CP dated November 1, 2021 of the Government amending and supplementing a number of articles of Decree No. 83/2014/ND-CP on petroleum trading provides that the Ministry of Industry and Trade is responsible for determining the demand for total petroleum source of the following year; allocate the minimum total source of petroleum to serve domestic consumption for the whole year according to the type structure to each key trader; responsible for checking and ensuring the minimum total petroleum source for traders, meeting the needs of the economy and the consumption of the society. Therefore, for the stabilization of petroleum supply, the Ministry of Finance proposes that the Ministry of Industry and Trade - the agency in charge and state management on this issue will give an answer.

By Thuy Linh/ Huyen Trang

Related News

Proposal extending 50% green tax cut for fuel products in 2025

Proposal extending 50% green tax cut for fuel products in 2025

VCN - The Ministry of Finance has just proposed extending 50% green tax cut in 2025 for gasoline (except ethanol), oil, and grease; reducing about 70% on jet fuel and 40% on kerosene. According to calculations, the total state budget will decrease by about VND44,224 billion under this policy.
“Greening” the textile, garment and footwear industry: Motivation from challenges

“Greening” the textile, garment and footwear industry: Motivation from challenges

VCN - Vietnam's textile and footwear industry is facing great pressure to satisfy more demanding requirements from international brands and national commitments on emission reduction while the input material and production costs are escalating.
Squadron 3, Anti-smuggling and Investigation Department: Proactively control and prevent smuggling of gasoline, oil and drugs at sea

Squadron 3, Anti-smuggling and Investigation Department: Proactively control and prevent smuggling of gasoline, oil and drugs at sea

VCN - Proactively grasping the situation and controlling the assigned areas in the southern sea, the Southern Sea Control Squadron (Squadron 3) and the Anti-smuggling and Investigation Department - General Department of Customs have coordinated to detect and prevent many cases of illegal transportation of gasoline, oil and drugs.
Diversifying supply sources for businesses to participate in the global value chain

Diversifying supply sources for businesses to participate in the global value chain

VCN - Vietnam currently has about 2,000 businesses producing spare parts and components, but only about 300 businesses can participate in the supply chain.

Latest News

Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - Slow credit demand and fierce competition have forced banks to seek ways to increase non-interest revenue, especially when there is a lot of support from the digital transformation of the entire banking system.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.

More News

Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Read More

Your care

Latest Most read
Banks increase non-interest revenue

Banks increase non-interest revenue

VCN - In the first 9 months of 2024, the group of banks leading in profit has focused on increasing the ratio of non-term deposits (CASA) to help reduce operating costs, resulting in positive credit growth.
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Mobile Version