Immediately implement the Resolution of the National Assembly Standing Committee on environmental protection tax rates for gasoline, oil, and grease

Implementing the conclusion of the National Assembly Standing Committee in Notice No. 1265/TB-TTKQH dated July 7, 2022 on the draft Resolution on environmental protection tax (EPT) rates for gasoline, oil, and grease and considering the proposal of the Ministry of Finance on implementing the Resolution of the National Assembly Standing Committee, the Deputy Prime Minister assigned the Ministry of Finance to preside over and coordinate with relevant ministries and agencies to immediately implement Resolution No. 20/2022/UBTVQH15 dated July 6, 2022, ensuring effective promotion of the policy.

The Ministry of Finance shall preside over and coordinate with relevant ministries and agencies to urgently study and amend the Decree on Export Tariffs and Preferential Import Tariffs (MFN) to appropriately reduce MFN preferential import tax on gasoline products in order to diversify supply sources for the domestic market.

Urgently study the contents related to value added tax and special consumption tax on gasoline and oil products to submit to the National Assembly for consideration and appropriate decision in case world gasoline and oil prices continue to have complicated developments, increase or remain high, affecting the inflation index, macro economy, people's livelihoods and economic growth.

The Deputy Prime Minister requested the Ministry of Finance to perform the above tasks in accordance with the direction of the Government leaders in Notice No. 57/TB-VPCP dated June 16, 2022, Official Dispatch No. 2179/VPCP-KTTH dated July 1, 2022 and Official Dispatch No. 2272/VPCP-KTTH dated July 7, 2022.

The Deputy Prime Minister requested the Ministries of Agriculture and Rural Development, Labor, War Invalids and Social Affairs, Finance, Industry and Trade, Transport, and the State Bank of Vietnam, according to their assigned functions and tasks, to study and supplement support policies for a number of subjects directly affected and facing many difficulties due to high gasoline and oil prices such as fishermen, the transportation industry, the poor, and low-income people...

The Ministry of Industry and Trade shall preside over and coordinate with the Ministry of Finance and relevant agencies to continue reviewing other factors constituting the base price of gasoline and oil prices according to the resolutions of the National Assembly and the resolution on questioning and answering questions at the 3rd session of the 15th National Assembly to have more room to reduce domestic gasoline and oil prices in management.

* In Document 1265/TB-TTKQH dated July 7, 2022 announcing the conclusion of the National Assembly Standing Committee on the draft Resolution on environmental protection tax rates for gasoline, oil, and grease, it is stated that, based on the Government's Submission, the National Assembly Standing Committee voted and agreed to issue a Resolution on environmental protection tax rates for gasoline, oil, and grease as proposed by the Government.

Specifically: Gasoline, excluding ethanol, decreased from VND2,000/liter to the floor level of VND1,000/liter; Aviation fuel decreased from VND1,500/liter to the floor level of VND1,000/liter; Diesel oil decreased from VND1,000/liter to the floor level of VND500/liter; Mazut, lubricants, and grease decreased from VND1,000/liter to the floor level of VND300/liter; Kerosene kept the tax rate of VND300/liter (the floor level in the tax rate bracket).

The Resolution shall be applied from July 11, 2022 to December 31, 2022. From January 1, 2023, the environmental protection tax rate shall be applied according to the provisions of Resolution No. 519/2018/UBTVQH14 dated September 26, 2012 of the National Assembly Standing Committee.

The Ministry of Finance said that environmental protection tax is an indirect tax, collected on products and goods that have a negative impact on the environment when used, so the cost of environmental protection tax will be transferred to the cost of products and goods and consumers are the ones who ultimately pay the environmental protection tax. The timely adjustment to reduce the environmental protection tax on gasoline, oil and grease in the context of high gasoline prices is considered an effective solution to reduce tax costs in the retail price structure of gasoline, thereby having an immediate impact in reducing retail gasoline prices.

The increase or decrease in gasoline prices in general will affect domestic production and consumption. At the same time, the change in the price of this item will lead to certain fluctuations in the prices of other items, reflected in the change in the CPI index.

Specifically, reducing environmental protection tax on gasoline, oil, and grease will contribute to reducing retail prices of gasoline, oil, and grease, thereby limiting the increase in production costs, reducing product prices, and stabilizing inflation.