Increase 300% environmental protection tax on gasoline

The National Assembly Standing Committee agreed to increase environmental protection tax on gasoline from VND1,000/liter to VND3,000/liter.

On the morning of March 10, the National Assembly Standing Committee gave its opinion on the issuance of a Resolution amending and supplementing Resolution No. 1269/2011/UBTVQH12 dated July 14, 2011 of the National Assembly Standing Committee on environmental protection tax (EPT) for a number of goods. 100% of the total number of delegates present agreed to increase the EPT for gasoline from VND1,000/liter to VND3,000/liter, and not increase the EPT for kerosene.

According to the Government's submission, to suit the current socio-economic conditions (ensuring state budget revenue in the context of world oil prices decreasing and remaining at a low level, as well as ensuring stable state budget revenue when implementing the Roadmap for reducing import tax on gasoline and oil according to international commitments; at the same time to encourage the use of bio-fuel), adjusting the environmental protection tax on gasoline and oil is a necessary and stable solution.

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 consistent with the roadmap for reducing import tax on gasoline and oil according to international commitments (ASEAN, ASEAN-China); reasonably stabilizing domestic gasoline and oil prices, equivalent to gasoline and oil prices in countries in the region (ASEAN, China and related countries). Contributing to reducing the selling price of biofuels (E5 gasoline, E10 gasoline), thereby encouraging people to use biofuels, reducing environmental pollution, contributing to sustainable economic development following the global green growth trend. Contributing to ensuring state budget revenue in the context of continuously decreasing crude oil prices.

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

At the meeting on the morning of March 10, 100% of delegates voted to increase environmental protection tax on 6/7 petroleum products as proposed by the Government, and agreed not to increase the environmental protection tax on kerosene (remaining the same as before at 300 VND/liter).

At the meeting, National Assembly Chairman Nguyen Sinh Hung emphasized: “Collecting environmental protection tax on gasoline is to protect the environment, so it cannot be used to compensate for other expenses. The environment is like this, we must focus on protecting the environment, both at the central and local levels, and we cannot collect all of it to compensate for the reduction of import tax” – said the National Assembly Chairman.

Vice Chairwoman of the National Assembly Nguyen Thi Kim Ngan and many others also noted how the 300% increase would impact the market, production and life. Therefore, it is necessary to report to the National Assembly on this issue./

According to VOV.VN