Increase environmental tax on gasoline to a maximum of VND8,000 per liter

The Ministry of Finance still maintains the proposal to raise the environmental protection tax bracket for gasoline to 3,000 - 8,000 VND per liter.

The Ministry of Finance has just continued to announce the draft Law amending and supplementing a number of articles of the Law on Environmental Protection Tax, in which the proposal to raise the environmental protection tax bracket for gasoline to 3,000 - 8,000 VND per liter is still maintained. Not only gasoline, the ceiling for jet fuel is also increased to 6,000 VND, while diesel, fuel oil, and lubricants are at 4,000 VND per liter.

Currently, the environmental protection tax on gasoline is 1,000 - 4,000 VND, however, the current applied rate is 3,000 VND per liter.

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Environmental protection tax is an absolute, indirect tax, collected on products and goods (hereinafter referred to as goods) that, when used, cause negative impacts on the environment. Environmental protection tax has been tripled since May 2015 and has contributed to helping the 2015 budget revenue exceed estimates in the context of plunging oil prices. However, theThe proposal to increase the tax bracket to 3,000 - 8,000 VND per liter previously met with reactions from experts and consumers.

Explaining the decision to maintain the proposal, the Ministry of Finance said that the calculation of the tax bracket adjustment not only takes into account the international commitment to gradually reduce import taxes, but also considers many other factors such as: gasoline is a product that when used causes a very negative impact on the environment, requiring policies to encourage the use of alternative energy, Vietnam's retail price of gasoline compared to other countries in the world, the tax rate on gasoline prices. Moreover, according to this agency, the adjustment also considers proactively responding to the world economic situation, especially the impact of large fluctuations in world oil prices...

The Ministry of Finance also said that this tax framework will be applied over a long period of time and will assess the impact of tax rate adjustments on the domestic economy, on business production activities of enterprises, on retail prices of gasoline and oil and people's lives.

According to VNE