Proposal to further reduce environmental tax on gasoline until 2026

The Ministry of Finance has proposed to continue reducing environmental protection tax on gasoline by half, jet fuel by 30% and kerosene by 40% until the end of next year.

Gas station staff is pumping fuel for customers.

The policy of reducing environmental protection tax on gasoline and oil will be applied from April 2022. Currently, this tax rate is reduced by 50%, equivalent to VND2,000 per liter of gasoline (excluding ethanol) and VND1,000 per liter of diesel. This policy expires at the end of this year, causing the environmental protection tax on gasoline and oil to return to the ceiling level from the beginning of 2026.

To ensure growth targets and contribute to stabilizing domestic fuel prices and CPI, the Ministry of Finance proposed extending this policy until the end of next year. Accordingly, the environmental protection tax on gasoline, excluding ethanol, is expected to be VND2,000 per liter; diesel, fuel oil, and lubricants VND1,000 per liter; grease VND1,000 per kilogram; and kerosene VND600 per liter.

In particular, it is proposed to apply a tax rate of 2,000 VND per liter for jet fuel, instead of the current preferential rate of 1,000 VND.

From 2027, environmental protection tax is expected to return to the ceiling level, according to regulations: gasoline (except ethanol) is 4,000 VND per liter; jet fuel is 3,000 VND per liter; diesel, fuel oil, lubricants are 2,000 VND per liter; kerosene is 1,000 VND per liter; grease is 2,000 VND per kilogram.

The Ministry of Finance said that maintaining the tax reduction policy in recent years has helped stabilize gasoline prices, limiting the negative impact of world price movements. This year, the tax reduction also contributed to reducing tax costs in the retail structure, thereby reducing gasoline prices.

Regarding aviation fuel, the Ministry believes that implementing the policy of reducing environmental protection tax helps reduce input fuel costs for the aviation industry and air transport enterprises.

Currently, the Vietnamese aviation market has basically recovered. Therefore, the Ministry of Finance proposed to regulate the environmental protection tax at 2,000 VND per liter, a reduction of 1,000 VND compared to the prescribed tax rate. This is to continue supporting businesses and ensure fairness among other transport sectors such as railways, roads, etc.

However, the budget revenue will decrease by about VND 40,835 billion in 2024. In the first 4 months of this year, the estimated revenue decrease is about VND 14,394 billion (excluding the value added tax revenue decrease). Although the budget revenue will decrease, the Ministry assesses that this will be a direct support from the State to help people and businesses recover, develop production, business, and develop the socio -economy.

HA (according to VnE)

Source: https://baohaiphongplus.vn/de-xuat-giam-tiep-thue-moi-truong-voi-xang-dau-het-2026-416106.html