Proposal to remove special consumption tax on gasoline and air conditioners

Proposal to remove special consumption tax on gasoline and air conditioners

11:23 | 07/28/2024 Views : 144

The Vietnam Chamber of Commerce and Industry (VCCI) has just sent a proposal to the drafting agency to study the abolition of special consumption tax on two products: gasoline and air conditioners. VCCI believes that imposing special consumption tax on gasoline is unreasonable, because this is an essential commodity.

VCCI proposes to remove special consumption tax on gasoline (Illustration photo)

Commenting on the Draft Law on Special Consumption Tax (amended), VCCI pointed out that gasoline is currently subject to two types of taxes with the same consumption-restricting nature: special consumption tax and environmental protection tax. According to VCCI, imposing special consumption tax on gasoline is unreasonable, because this is an essential commodity. VCCI suggested that the drafting agency consider removing special consumption tax on gasoline and possibly adjusting environmental protection tax to match the goal of environmental protection.

Regarding air conditioners, VCCI said that this item has been subject to special consumption tax since 1998 at a rate of 20%, then reduced to 10% in 2008. Although previously considered a luxury item, air conditioners have now become an essential need in life. VCCI said that maintaining a suitable room temperature helps increase labor productivity, which is very important in the context of Vietnam moving towards developing a knowledge-based economy . Therefore, this agency proposed to remove the special consumption tax on air conditioners.

In addition, VCCI also expressed its opinion on the regulation of lower tax rates for cars running on gasoline combined with electric power. Currently, the draft regulation only applies to hybrid cars with separate electric charging systems, while hybrid cars without separate electric charging systems still have the effect of reducing the use of fossil fuels. VCCI proposed that there should be an incentive policy for this type of car with a lower tax rate than gasoline cars.

This proposal of VCCI is receiving attention from businesses and consumers, as adjusting tax policies can greatly affect the market and people's daily lives.

Huy Tung

Comment

Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/d8ac2d8c-4c08-4c94-b60a-25df63895ea7