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Increase in the EPT on petroleum will contribute to the green growth. Photo: Internet

At the March regular Government press conference held on the evening of 2nd April 2018, responding to questions about the draft of increase in environmental protection tax, Deputy Minister of Finance Vu Thi Mai said that the Ministry has consulted ministries, sectors and localities about the draft resolution on environmental protection tariffs. Now, the Ministry has collected comments and sent them to the Ministry of Justice, which is expected to be completed and submitted to the Government in this April.

Accordingly, in the draft resolution, the Ministry of Finance proposed to revise the EPT rates as follows: Gasoline increases from 3,000 VND / liter to ceiling level of 4,000 VND / liter, up by 1,000 VND / liter; Mazut oil, lubricant increase from 900 VND / liter to ceiling level of 2,000 VND / liter, up by 1,100 VND / liter; Grease increases from 900 VND / kg to ceiling level of 2,000 VND / kg, up 1,100 VND / kg; Aircraft fuel, kerosene are maintained at the current rate of 3,000 VND / liter for aircraft fuel (ceiling level in the tax bracket) and 300 VND / liter for kerosene (flooring level in the tax bracket).

Deputy Minister Vu Thi Mai said that the upward revision was based on Resolution No. 07-NQ / TW of the Politburo on policies and measures to restructure the state budget and public debt management to ensure the safe and sustainable national finance, in which there was a measure which is the restructuring of state budget revenues. In addition, the National Assembly has also issued Resolution No. 25/2016 / QH14 on the National 5-Year Financial Plan for the period 2016-2020, which proposed a measure to restructure the state budget, which is completing the restructuring of state budget revenues, exploiting well revenues from assets, natural resources and the environment.

In addition, the contents of the draft resolution were commented and concluded by theStanding Committee of the National Assembly when submitting the draft Law amending and supplementing the Law on EPT. The Law Project is delayed until 2019, so first of all, it is required to revise the EPT rates set by the National Assembly Standing Committee.

Therefore, the "Resolution on increase in EPT is in line with the growth strategy and practical situation of each period and environmental pollution situation" stated Deputy Minister Vu Thi Mai

Regarding the impact on inflation, the representative of the Ministry of Finance said that the Ministry has made careful analysis and evaluation. If the above revision is effective from 1st July 2018, the CPI in July compared to June will rise by 0.27-0.29%, affecting the average CPI from 0.11 to 0.15 %. According to the socio-economic development plan in 2018, the average CPI is 4%, so the tax increase in the EPT has been considered carefully in accordance with the growth target.

Experts view: Proposal to increase the environmental protection tax is reasonable VCN- The Ministry of Finance has officially collected comments on the draft resolution on environmental protection tax ...

In particular, according to the Ministry of Finance, the increase in EPT on petroleum products will promote the green growth, encourage the efficient use of resources and develop environmental protection products such as: biofuel, eco friendly plastic bags in compliance with the commitments on environmental protection in the agreements to which Vietnam acceded.