Finance Ministry proposes to increase environmental tax on gasoline

SGGP
The Ministry of Finance has submitted to the Government a draft resolution of the National Assembly Standing Board, proposing to increase environmental protection tax on gasoline by VND1,000.

A filling station in Kinh Duong Vuong street, District 6, HCMC (Photo: SGGP)

A filling station in Kinh Duong Vuong street, District 6, HCMC (Photo: SGGP)

If being approved, the resolution will take effect from July 1.
The ministry said that the proposal aims to encourage organizations and individuals to economically use commodities affecting the environment, reduce environmental pollution and repair limitations in the environmental protection tax rate on some commodities.
According to the proposal, the tax on gasoline will hike from VND3,000 to VND4,000 a liter; diesel from VND1,500 to VND2,000 a liter; mazut, lubricant and grease from VND900 to VND2,000 a kilogram.
Jet fuel and kerosene tax rates will remain unchanged because fet fuel rate has already been at the ceiling level while kerosene is a necessary goods to the poor and ethnic minorities in remote areas.
Anthracite coal will see the tax rate hike from VND20,000 to VND30,000 a ton. Other types of coals will raise from VND10,000 to VND15,000 a ton.
Plastic bag rate will raise from VND40,000 to the ceiling rate of VND50,000 a kilogram to gradually reduce the product’s use and suit international practice.
Talking about social impact, the ministry said that the tax raise would contribute in encouraging production and consumption of environmentally friendly products, reducing emissions and conducting Vietnam’s international commitments on environmental protection.
About economic impact, the ministry said that the tax rate on gasoline would hike only VND1,000 a liter, if crude oil price did not fluctuate much and basic price constituents did not change, the tax rate increase ratio in the selling price of gasoline would approximate 4.9 percent, diesel 3.2 percent, mazut 8.9 percent, lubricant 0.6 percent and grease 2.3 percent.

By NGOC QUANG – Translated by Hai Mien

Other news

Most view

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

HCMC focuses on safe pig breeding chain

The HCM City department of agriculture & rural development has just held conference about the sustainable pig breeding and safe pork production market in HCMC.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market