One liter of gasoline will bear an environmental tax of 8,000 VND.

The Ministry of Finance is seeking feedback on a 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 8,000 VND.liter.

Illustrative image from the Internet

If this is approved, gasoline prices could experience a record-breaking surge.

Specifically, the draft regulations stipulate that gasoline will be subject to an environmental protection tax ranging from 3,000 to 8,000 VND/liter, significantly higher than the current tax rate. Currently, the maximum environmental protection tax 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 conducted a study calculating how to raise the environmental protection tax on gasoline to the maximum level of 4,000 VND/liter.

Not only gasoline, but also other petroleum products are expected to see a significant increase in environmental protection tax rates.

Specifically, the draft regulations stipulate an environmental protection tax rate for diesel fuel ranging from 1,500 to 4,000 VND/liter, 2-3 times higher than the current rate (500-2,000 VND/liter for diesel fuel). The tax rate for fuel oil (mazut) will also increase from 300-2,000 VND/liter to 900-4,000 VND/liter. Only kerosene will remain at the current rate of 300-2,000 VND/liter.

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

Specifically, surprisingly, even though E5 and E10 gasoline are "cleaner," the environmental protection tax rates for these two types of gasoline are quite high, ranging from 2,700 to 7,200 VND/liter for E5 and from 2,500 to 6,800 VND/liter.

Plastic bags are subject to a tax rate ranging from 40,000 to 80,000 VND per kilogram.

According to Vietnamnet