1 liter of gasoline will bear 8,000 environmental tax

The Ministry of Finance is seeking comments on the draft Law amending and supplementing the Law on Environmental Protection Tax, in which gasoline is expected to be subject to a maximum environmental protection tax of VND8,000/kg.liter.

Illustration photo from the Internet

If this passes, gasoline prices could see a record spike.

Specifically, the draft regulation stipulates that gasoline will be subject to an environmental protection tax of 3,000-8,000 VND/liter, much higher than the current tax rate. Currently, the maximum environmental protection tax rate for gasoline is 4,000 VND/liter and the current environmental protection tax rate for gasoline is 3,000 VND/liter.

In mid-2016, the Ministry of Finance had a study calculating to raise environmental protection tax on gasoline to the maximum of 4,000 VND/liter.

Not only gasoline products, oil products are also expected to have a strong increase in environmental protection tax bracket.

Specifically, the draft stipulates that the environmental protection tax rate for diesel is from 1,500-4,000 VND/liter, 2-3 times higher than the current tax rate (diesel from 500-2,000 VND/liter). Fuel oil also increases from the tax rate of 300-2,000 VND to 900-4,000 VND/liter. Only kerosene remains at 300-2,000 VND/liter.

Another notable thing in the draft is that E5 gasoline, E10 gasoline, and plastic bags are also subject to environmental protection tax.

Specifically, the surprising thing is that although E5 and E10 gasoline are "cleaner", the environmental protection tax bracket for these two types of gasoline is also quite high, with a tax bracket of 2,700 VND-7-200 VND/liter for E5 and from 2,500-6,800 VND/liter.

Plastic bags are subject to tax from 40,000 to 80,000 VND/kg.

According to Vietnamnet