Environmental tax bracket has not been extended to 8,000 VND for gasoline
The Government requests to withdraw the Draft Law amending and supplementing a number of articles of the Law on Environmental Protection Tax from the 2019 law and ordinance making program.
In the submission to the National Assembly, the Government requested to withdraw the draft Law amending and supplementing a number of articles of the Law on Environmental Protection Tax from the 2019 law and ordinance making program. This means that the proposal to increase the environmental protection tax bracket for gasoline from VND4,000 to a maximum of VND8,000 per liter has also been withdrawn.
The reason for withdrawing this bill was explained by the Government as needing more time to study and complete the draft law according to the opinions of the National Assembly Standing Committee, especially the issue of expanding the taxable subjects that have negative impacts on the environment.
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In addition, according to the Resolution of the National Assembly Standing Committee on environmental protection tax schedule effective from the beginning of 2019, some items of gasoline, jet fuel, diesel, fuel oil... have been adjusted to the ceiling level in the current tax rate bracket. Kerosene, coal, herbicides... have not been adjusted to the maximum tax rate bracket.
Therefore, the Government believes that it takes time for the new regulations to "come into effect". On this basis, the competent authority will specifically assess the impact of adjusting the tax framework on the orientation of using products that pollute the environment and the level of impact on production, business activities and competitiveness of enterprises.
Previously, in the draft amending and supplementing a number of articles of the Law on Environmental Protection Tax drafted by the Ministry of Finance, it was proposed to raise the environmental protection tax bracket for gasoline to a maximum of VND8,000 per liter.
From January 1, 2019, the environmental tax on gasoline has increased from 3,000 to 4,000 VND per liter. Environmental tax on oil products has also increased simultaneously, such as kerosene increased to 1,000 VND per liter; diesel increased to 2,000 VND per liter... With this tax increase, each liter of gasoline also "bears" an additional 1,000 VND due to the increase in environmental tax.
The retail price of each liter of gasoline has increased by VND940 since the beginning of March due to the strong increase in the world market. Currently, each liter of E5 RON 92 gasoline is VND17,210, and RON 95 gasoline is VND18,540.
