Ministry proposes raising environmental tax on petrol

The Ministry of Finance has proposed a rise of environmental protection tax on petrol to the ceiling level of VND4,000 ($17 cent) per litre from the current VND3,000 ($13 cent) per litre.

Ministry proposes raising environmental tax on petrol

In a draft resolution on environmental protection tax list it has sent to the National Assembly Standing Committee, the ministry also suggested an increase of tax for oil products to another ceiling level of VND2,000 ($8 cent) per litre.
With the raise, State budget collection from petrol and oil taxes will reach about over The Ministry of Finance has proposed a rise of environmental protection tax on petrol to the ceiling level of 4,000 VND (17 US cent) per litre from the current 3,000 VND (13 US cent) per litre.
In a draft resolution on environmental protection tax list it has sent to the National Assembly Standing Committee, the ministry also suggested an increase of tax for oil products to another ceiling level of VND 2,000  (8 US cent) per litre.
With the raise, State budget collection from petrol and oil taxes will reach about over 55 trillion VND (2.42 billion USD), about 14.3 trillion VND higher than the current amount.
Apart from petrol, environment taxes for other products such as fossil coal, hydrocloflocacbon (HCFC), and plastic bags will also rise from 1,000 VND-10,000 VND.
Specifically, tax on fossil coal will be up by 5,000 VND-10,000 VND per tonne, resulting in tax revenue of about 2.38 trillion VND each year, an increase of 795 billion VND each year.
Meanwhile, tax on plastic bags will also rise by 10,000 VND each kilo, which means from VND40,000 per kilo at present to 50,000 VND per kilo. Estimated tax revenue from the product will be about VND67.5 billion.
According to the ministry, if the proposal is approved, total revenues from environmental protection taxes will be about VND57.61 trillion per year, up about VND15.18 trillion per year.
The ministry explained that the environmental tax for oil and petrol products have been applied since 2012, helping raise public responsibility and awareness of preserving the environment, while encouraging the production and use of green products as Vietnam is gradually cutting import taxes following its international commitments.
From 2012-2017, total collection from environmental protection taxes were about VND150 trillion, or VND25 trillion each year.
However, the ministry recognised the need to adjust the taxes to a more suitable level, as the retail prices of petrol in Vietnam is lower than that in neighbouring countries and some countries in the ASEAN and Asia.
Currently, Vietnam’s petrol retail price at VND19,980 ($0.87) per litre is lower than that in 120 other countries.
At the same time, the ministry underlined that research showed that the use of goods that are subject to environmental protection tax harms the environment. Scientists’ calculation clarified that the tax must be much higher in order to fix the harms done by those goods.
A survey of the ministry on the proposed environmental tax raise on the online portals of the Government and the ministry has received 77 opinions of other sectors and ministries, localities, business associations and organisations, of which 47 opinions agreed on the necessity of the tax increase VND55 trillion ($2.42 billion), about 14.3 trillion VND higher than the current amount.
Apart from petrol, environment taxes for other products such as fossil coal, hydrocloflocacbon (HCFC), and plastic bags will also rise from VND1,000 -VND10,000 .
Specifically, tax on fossil coal will be up by 5,000 VND-10,000 VND per tonne, resulting in tax revenue of about 2.38 trillion VND each year, an increase of 795 billion VND each year.
Meanwhile, tax on plastic bags will also rise by VND10,000 each kilo, which means from VND40,000 per kilo at present to VND50,000 per kilo. Estimated tax revenue from the product will be about VND67.5 billion.
According to the ministry, if the proposal is approved, total revenues from environmental protection taxes will be about VND57.61 trillion per year, up about VND15.18 trillion per year.
The ministry explained that the environmental tax for oil and petrol products have been applied since 2012, helping raise public responsibility and awareness of preserving the environment, while encouraging the production and use of green products as Vietnam is gradually cutting import taxes following its international commitments.
From 2012-2017, total collection from environmental protection taxes were about VND150 trillion , or VND25 trillion each year.
However, the ministry recognised the need to adjust the taxes to a more suitable level, as the retail prices of petrol in Vietnam is lower than that in neighbouring countries and some countries in the ASEAN and Asia.
Currently, Vietnam’s petrol retail price at VND19,980 ($0.87) per litre is lower than that in 120 other countries.
At the same time, the ministry underlined that research showed that the use of goods that are subject to environmental protection tax harms the environment. Scientists’ calculation clarified that the tax must be much higher in order to fix the harms done by those goods.
A survey of the ministry on the proposed environmental tax raise on the online portals of the Government and the ministry has received 77 opinions of other sectors and ministries, localities, business associations and organisations, of which 47 opinions agreed on the necessity of the tax increase

Vietnamnews

Other news

Most view

Bac Giang lychees (Photo: VNA)

Bac Giang’s lychee value estimated at 240 million USD

Thieu lychee, a unique fruit of the northern  province of Bac Giang, is expected to record 5.5 trillion VND (240.28 million USD) in value this year if it can retain its current price until the end of the fruit season.

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

Vocarimex plans to expand export markets

The Vietnam Vegetable Oil Industry Corporation -Vocarimex (code: VOC) has set its target the 2018 revenue will reach VND 4,8trillion, an increasing of 9 percent compared to 2017 and pre-tax profit target will be VND 300 billlion ($ 13 million), dividend payment ratio at 12 percent.

 

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

DIG issue 14 million shares

Development Investment Construction Joint Stock Corp (DIG)’s shareholders have approved its plan to issue 14.3 million shares in the second and third quarters of 2018.