The Ministry of Finance proposes further reducing the environmental protection tax on gasoline by 2,000 VND/liter in 2025.

The Ministry of Finance has recently sent a document seeking opinions from relevant ministries and agencies on a proposal to further reduce the environmental protection tax on gasoline and diesel in 2025.

Accordingly, the Ministry of Finance proposes further reducing the environmental protection tax by 2,000 VND/liter for gasoline and 600-1,000 VND/liter/kg for other petroleum products in 2025.

In addition, the Ministry of Finance also proposed a further 50% reduction in environmental protection tax in 2025 for gasoline (excluding ethanol), oil, and lubricants; a reduction of approximately 70% for aviation fuel and 40% for kerosene.

The environmental protection tax rates are expected to decrease as follows: gasoline (excluding ethanol) from 4,000 VND to 2,000 VND/liter; aviation fuel from 3,000 VND to 1,000 VND/liter; diesel, fuel oil, and lubricating oil to 1,000 VND/liter; lubricating grease to 1,000 VND/kg; and kerosene to 600 VND/liter.

According to the Ministry of Finance, reducing the environmental protection tax on gasoline and diesel helps stabilize domestic fuel prices. Photo: Thanh Tuan

According to the Ministry of Finance, this proposal stems from the forecasts of reputable international organizations, indicating that the global economic landscape will continue to change rapidly and unpredictably in 2025. Domestically, although the economy is gradually recovering, it is not yet truly stable and secure.

To ensure stable growth targets, the Ministry of Finance proposes further reductions in environmental protection taxes on gasoline, diesel, and lubricants in 2025 to help stabilize domestic fuel prices and curb inflation.

To ensure continuity and timeliness, the Ministry of Finance proposes that the resolution be effective from January 1, 2025 to December 31, 2025.

Assessing the impact of the proposal, according to the Ministry of Finance, this proposal will contribute to stabilizing domestic retail gasoline prices, thus supporting people and businesses, but will reduce budget revenue.

With projected consumption of gasoline, diesel, and lubricants in 2025 being equivalent to 2024, and with the proposed reduction in environmental protection tax, environmental protection tax revenue in 2025 will decrease by approximately VND 40,204 billion, and total state budget revenue (including the reduction in value-added tax) will decrease by approximately VND 44,224 billion.

Source: https://congthuong.vn/bo-tai-chinh-de-xuat-tiep-tiep-giam-thue-bao-ve-moi-truong-2000-donglit-xang-trong-nam-2025-356774.html