The environmental tax rate on gasoline has not yet been increased to 8,000 VND.
The government is requesting to withdraw the Draft Law amending and supplementing a number of articles of the Law on Environmental Protection Tax from the 2019 legislative and ordinance drafting program.
In a submission to the National Assembly, the Government requested the withdrawal of the draft Law amending and supplementing a number of articles of the Law on Environmental Protection Tax from the 2019 legislative agenda. This also means that the proposal to increase the environmental protection tax rate on gasoline from 4,000 VND to a maximum of 8,000 VND per liter has also been withdrawn.
The government explained that the reason for withdrawing the bill was the need for more time to study and refine the draft law based on the opinions of the National Assembly Standing Committee, especially regarding the expansion of the tax base that negatively impacts the environment.
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Furthermore, according to the Resolution of the National Assembly Standing Committee on environmental protection tax rates effective from the beginning of 2019, some items such as gasoline, aviation fuel, diesel oil, and fuel oil have been adjusted to the maximum level within the current tax rate framework. Kerosene, coal, and herbicides have not yet been adjusted to the maximum tax rate level.
Therefore, the Government believes that time is needed for the new regulations to "come into effect". Based on this, the competent authority will specifically assess the impact of adjusting the tax framework on the orientation of using environmentally polluting products and the extent of the impact on production, business activities, and the competitiveness of enterprises.
Previously, in the draft amendments to several articles of the Law on Environmental Protection Tax prepared by the Ministry of Finance, it was proposed to raise the maximum environmental protection tax rate for gasoline to 8,000 VND per liter.
From January 1, 2019, the environmental tax on gasoline and diesel increased to the maximum level from 3,000 to 4,000 VND per liter. Environmental taxes on other petroleum products also increased simultaneously, such as kerosene to 1,000 VND per liter; diesel to 2,000 VND per liter... With this tax increase, each liter of gasoline also "bears" an additional 1,000 VND due to the increased environmental tax.
Retail gasoline prices have increased by 940 VND per liter since the beginning of March due to a sharp rise in global prices. Currently, E5 RON 92 gasoline is priced at 17,210 VND per liter, and RON 95 gasoline at 18,540 VND per liter.
