Ministry of Finance proposes to raise EPT on petroleum to the ceiling rate

	Increase in the environmental protection tax on petroleum has been carefully considered
	The majority of respondents agreed to increase the environmental tax on petroleum
	What does the Ministry of Finance say about the increase of the environmental tax on oil and gas?

Increase in EPT in general will contribute to raising the state budget VND15,189.2 billion per year. Photo: H.Van.

Still raising tax on petroleum to the ceiling rate

Accordingly, the tax rate on petroleum is proposed to raise from VND3,000 / liter to VND4,000 / liter, up by VND1,000 / liter; diesel from VND1,500 / liter to VND2,000 / liter, up by VND500 / liter; mazut oil, lubricant from 900 VND / liter to the ceiling rate of VND2,000 / liter, up by VND 1,100/ liter; grease from VND 900 / kg to the ceiling rate of VND 2,000/ kg, up by 1,100 VND / kg; and kerosene from VND 300 / liter to VND 2,000 / liter, up by VND 1,700 / liter.

The proposal to raise tax on petroleum is to further raise the responsibility and awareness of organizations and individuals for the environment; to contribute to limiting the use of fossil fuel products causing environmental pollution; and encourage organizations and individuals to produce and use eco-friendly products (such as bio-fuel); ensure the national interests in the context of deep integration when import tax is cut according to international commitments and unpredictable change of oil price.

In addition to petroleum, the EPT on coal products is also proposed to increase to encourage the use of alternative fuels, causing less impact on the environment and not significantly affecting the production of the coal industry as well as electricity price (coal is the input of many manufacturing industries, including electricity).

Specifically, the Government proposed to increase the tax on anthracite coal from VND 20,000 / ton to VND 30,000/ ton, up by VND 10,000 / ton; lignite, bitum coal and other coals from VND 10,000 / ton to VND 15,000/ ton, up by VND 5,000/ ton.

For Hydrochlorofluorocarbons (HCFCs), including HCFCs in mixtures containing HCFCs, the EPT on HCFSs is proposed to raise from VND 4,000 / kg to VND 5,000 / kg, up by VND 1,000 / kg. .

Nylon bags are subject to tax, it is proposed to increase the EPT on nylon bags from VND 40,000/ kg to VND 50,000/ kg, up by VN 10,000 / kg.

Accordingly, the adjustment of the EPT rates mentioned will affect the average CPI in 2018 about 0.11 to 0.15%. However, the increase in the EPT will encourage the use of energy and resources economically and efficiently; and contribute to encouraging the production and consumption of eco-friendly products.

At the same time, it will contribute to raising the State budget revenue about VND 15,189.2 billion per year, thereby contributing to generating more revenues for the implementation of socio-economic tasks, including spending tasks for environmental protection.

Not imposing tax on coke and regenerated oil

Also in the proposal submitted to the National Assembly Standing Committee, the Government explained a number of controversial issues related to this draft. Specifically, there were some problems arising on the EPT on coke and regenerated oil in the past time. According to Article 3 of the Law on EPT, coke and regenerated oil are not in the list of goods subject to EPT.

According to Article 10 of the Law on EPT, the EPT is paid only once (from the production, the importation to the use of the product), so if the product had been declared and paid for EPT, the EPT will not be paid at trading and use stages thereinafter.

Coke is a product that is refined from bitum coal (bitum coal is subject to EPT). Regenerated oil is the product obtained from the collection and treatment of hazardous waste (which is fossil petroleum discarded during the maintenance of transport means, machinery and equipment, tires , batteries, etc); Regenerated oil is used mainly as a furnace oil additive, not used for machinery operation.

According to the current Law on EPT, the ministries (Ministry of Industry and Trade, Environment and Natural Resources, Science and Technology, Finance) said that coke and regenerated oil are not subject to EPT and proposed to consider to add coke and regenerated oil when studying the amendment and supplement to the Law on EPT.

During the implementation, due to different understandings, some localities have collected EPT on coke (about VND 114 million in 2015 and 2016).

From the above-mentioned report, the Government proposes the National Assembly Standing Committee to consider and decide that coke and regenerated oil are not subject to EPT under the Law on EPT. In addition, the collected EPT amount on coke and regenerated oil (if any) from the effective date of the Law on EPT is defined as the overpaid tax amount and handled as in accordance with the Law on tax administration.

Environmental protection tax for biofuel must comply with the principles of taxes VCN- Facing to the proposal for more preferential environmental protection tax (EPT) rates to promote the use ...

The Government also asked the National Assembly Standing Committee to assign the Prime Minister to guide (or assign the Ministry of Finance to guide) the two specific contents mentioned above.