Raising the environmental tax on gasoline: A deliberate step

VCN- The Government has formally submitted to the Standing Committee of the National Assembly the Resolution on the Environmental Protection Taxes. In particular, a topic of public concern is an increase of gasoline tax.
tang thue moi truong voi xang dau buoc di than trong Proposing the adjustment of environmental taxes contributes to limiting petrol smuggling
tang thue moi truong voi xang dau buoc di than trong Why does the Ministry of Finance propose increasing the environmental tax on gasoline?
tang thue moi truong voi xang dau buoc di than trong What does the Ministry of Finance say about the increase of the environmental tax on oil and gas?
tang thue moi truong voi xang dau buoc di than trong
The retail price for petrol in Vietnam is lower than that in 122 countries. Photo: Hong Van.

Promote the use of clean fuels

According to the draft, the proposed environmental protection tax rate for gasoline shall increase from VND 3,000 per liter to VND 4,000 per liter, an increase of VND 1,000 per liter; diesel from VND 1,500 per liter to VND 2,000 per liter, an increase of VND 500 per liter; mazut oil from 900 VND per liter to the ceiling of 2,000 VND per liter, an increase of 1,100 VND per liter; grease from 900 VND per kg to the ceiling of 2,000 VND per kg, an increase of 1,100 VND per kg; kerosene from VND 300 per liter to VND 2,000 per liter, an increase of VND 1,700 per liter.

The proposal to raise taxes on petrol and oil in order to further raise the responsibility and awareness of organizations and individuals towards environment protection; contributing to limiting the use of fossil fuel products, causing environmental pollution; Encouraging organizations and individuals to produce and use substitute environmentally friendly products (such as bio-fuel); to ensure the national interests in the context of deep integration when implementing import duty reduction according to international commitments and unpredictable oil prices.

For further analysis, Mr. Pham Dinh Thi, Director of Tax Policy Department, under the Ministry of Finance said: Currently, we are implementing FTAs and import taxes are falling rapidly. An increase in other taxes will be one of the sources to offset revenues from imports. However, from the perspective of environmental protection, gasoline, plastic bags and HCFCs are the items causing a very bad impact on the environment.

Mr. Thi added that not only Vietnam, but also other countries in the world have regulated the taxation of petroleum and petroleum products to encourage people to use environmentally friendly products. For example, from 1 January 2018, Vietnam shall not use A92 gasoline anymore but is to use E5 instead. It is also a way to protect the environment.

On the other hand, current gas prices in Vietnam are low compared to countries sharing our borders in Asia, as well as othercountries in the world. According to the ranking of 167 countries, Vietnam is ranked 45th. Thus, retail price for petrol in Vietnam is lower than that in 122 countries.

Ms. Vu Thi Mai, the Deputy Minister of Finance said that the tax increase was based on Resolution No. 07-NQ / TU of the Politburo on the policy with solutions to restructure the State budget and public debt management to ensure a safe and sustainable national finance, to restructure State budget revenues.

In addition, the National Assembly has also adopted Resolution No. 25/2016 / QH14 on the National Five-Year Financial Plan for 2016-2020, proposing solutions to restructure the state budget to complete the restructuring of state budget revenues. Make good use of revenues from assets, resources and the environment.

Moreover, the content of the draft resolution has been commented on by the National Assembly Standing Committee on the drafting of the Law amending and supplementing the Law on Environmental Protection. The draft law is backed up to 2019, so the first step is to submit the adjustment of environmental protection tax rates set by the Standing Committee of the National Assembly.

"The resolution to increase environmental protection tax is in line with the growth strategy and practical situation in each period and the situation of environmental pollution,” the Deputy Minister Vu Thi Mai said.

Need sharing

Assoc. Prof. Dr. Le Xuan Truong, Dean of the Faculty of Taxation, under the Finance Academy, said that petrol was an important item for the State, as well as an important input for transportation businesses and some other production sectors, and for people's transport. The increase of environmental protection tax on gasoline not only affects the state budget revenue but also affects the market price and people's lives. Therefore, every proposal to increase or reduce the environmental protection tax for gasoline must be carefully considered and the Ministry of Finance knows this very clearly.

In fact, an increase of environmental protection tax on gasoline and petroleum as proposed is necessary and reasonable for 3 reasons. Firstly, to ensure budget revenue under the condition of import tax on petroleum, which must be adjusted to decrease due to the FTAs. Secondly, before proposing to increase environmental protection tax for gasoline, the tax on petrol has decreased a lot and the State has to reduce its budget to support businesses and people, so it is time for businesses and people to share with the State. Thirdly, it should reduce the pressure of petroleum smuggling on other state agencies by adjusting Vietnam's petroleum price to be equal to that of other countries in the region. The proposed increase is to ensure the harmonious sharing of interests of the State, enterprises and consumers.

tang thue moi truong voi xang dau buoc di than trong The majority of respondents agreed to increase the environmental tax on petroleum

VCN- The Ministry of Finance has issued a formal report explaining and accepting opinions of ministries, branches, ...

From another perspective, Assoc. Prof. Dinh Trong Thinh, under the Finance Academy stated: An increase of environmental protection tax will affect many petroleum product prices. The increase in petrol and gasoline prices will also have an impact on business activities of enterprises. Enterprises have to accept and must understand that for many yearsour petrol price is lower than that of other countries in the region because it is still receiving the protection of the state. However, in that context, we have to accept the "drop" in price according to the general trend of the market economy, and the State can not protect forever. Therefore, enterprises and people need to share with the State in the context of a difficult budget.

By Hong Van/ Hoang Anh

Related News

Bright spots at the beginning of the year

Bright spots at the beginning of the year

VCN - Production and business activities of enterprises have been vibrant since the first days of the year, thanks to which, many economic indicators in the first 2 months of 2024 are positive and positive. This is the fulcrum of trust and motivation for businesses to continue to develop.
Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

Lang Son Finance, Tax and Customs agencies needs to proactively capture information to develop the border gate economy

VCN - That was the direction of Deputy Minister of Finance Nguyen Duc Chi at a working session with leaders of the Provincial People's Committee and the Lang Son Departments of Finance, Tax, and Customs on March 19.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Tax Industry actively supports during the peak month of tax settlement

Tax Industry actively supports during the peak month of tax settlement

VCN – With the goal of facilitating taxpayers in complying with tax law polices, especially tax finalization procedures, the Tax industry actively supports enterprises and people in this work. Local tax departments have held online and offline meetings to promptly remove difficulties and obstacles in the tax finalization process.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version