Increase environmental protection tax on gasoline by 300%.

The Standing Committee of the National Assembly agreed to increase the environmental protection tax on gasoline from 1000 VND/liter to 3000 VND/liter.

On the morning of March 10th, the Standing Committee of the National Assembly discussed the issuance of a Resolution amending and supplementing Resolution No. 1269/2011/UBTVQH12 dated July 14, 2011, of the Standing Committee of the National Assembly on the environmental protection tax schedule for certain goods. 100% of the delegates present agreed to increase the environmental protection tax on gasoline from 1000 VND/liter to 3000 VND/liter, while not increasing the environmental protection tax on kerosene.

According to the Government's proposal, in order to be consistent with current socio-economic conditions (ensuring state budget revenue in the context of falling and persistently low world oil prices, as well as ensuring stable state budget revenue when implementing the roadmap for reducing import taxes on petroleum products according to international commitments; and at the same time to encourage the use of biofuels), adjusting the environmental protection tax rate on petroleum products is a necessary and stable solution.

The environmental protection tax on gasoline will increase by 2,000 VND/liter.

The issuance of the Resolution amending and supplementing Resolution No. 1269/2011/UBTVQH12 is in line with the roadmap for reducing import taxes on petroleum products according to international commitments (ASEAN, ASEAN-China); it reasonably stabilizes domestic petroleum prices, equivalent to prices in other countries in the region (ASEAN, China, and related countries). It contributes to reducing the selling price of biofuels (E5 gasoline, E10 gasoline), thereby encouraging people to use biofuels, reducing environmental pollution, and contributing to sustainable economic development in line with the global green growth trend. It also helps ensure state budget revenue under conditions of continuously falling crude oil prices.

After calculations, the Government submitted to the Standing Committee of the National Assembly a plan to adjust the environmental protection tax rate on gasoline and diesel as follows: Increase the environmental protection tax rate on gasoline from 1,000 VND/liter to 3,000 VND/liter, an increase of 2,000 VND/liter. The environmental protection tax rate on aviation fuel, various types of oil, and lubricants will also increase accordingly.

At the morning session on March 10th, 100% of the delegates voted to increase the environmental protection tax on 6 out of 7 petroleum products as proposed by the Government, and unanimously agreed not to increase the environmental protection tax on kerosene (keeping it unchanged at 300 VND/liter).

At the session, National Assembly Chairman Nguyen Sinh Hung emphasized: "The environmental protection tax on gasoline and diesel is for environmental protection purposes and should not be used to subsidize or spend on other expenses. Given the current state of the environment, we must focus on environmental protection, both at the central and local levels, and we cannot simply collect all the revenue for the central government to compensate for reduced import taxes," the National Assembly Chairman said.

Deputy Speaker of the National Assembly Nguyen Thi Kim Ngan and many others also noted the impact of a 300% increase on the market, production, and people's lives. Therefore, a report on this matter needs to be submitted to the National Assembly.

According to VOV.VN