Proposal to continue reducing 50% of environmental protection tax on gasoline in 2024

10/16/2023 07:25 Nhat Linh Print article

ANTD.VN - The Ministry of Finance has proposed to continue reducing environmental protection tax on gasoline by 50% as currently implemented, until the end of 2024.

The Ministry of Finance has just sent an official dispatch to ministries, branches, People's Committees of provinces and cities and the Vietnam Federation of Commerce and Industry (VCCI) asking for opinions on the draft Resolution on environmental protection tax rates for gasoline, oil, and lubricants to be applied in 2024.

Accordingly, the Ministry of Finance proposed to apply a reduction in environmental protection tax on gasoline as prescribed in Resolution No. 30/2022 of the National Assembly Standing Committee.

Resolution 30 on reducing environmental tax on gasoline, oil, and grease is currently effective until December 31, 2023.

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Ministry of Finance proposes to continue reducing environmental protection tax on gasoline

Accordingly, the environmental protection tax rate for gasoline (except ethanol) is 2,000 VND/liter; jet fuel, diesel, fuel oil, and lubricants is 1,000 VND/liter; grease is 1,000 VND/kg; kerosene: 600 VND/liter.

To ensure continuity and timeliness, the Ministry of Finance proposes that the resolution take effect from January 1, 2024.

From January 1, 2025, the environmental protection tax on gasoline, oil, and grease will return to implementation according to Resolution No. 579/2018 of the National Assembly Standing Committee. This means that the environmental protection tax on gasoline (except ethanol) will return to VND4,000/liter; jet fuel is VND3,000/liter; diesel, fuel oil, and lubricants are VND2,000/liter; kerosene is VND1,000/liter; grease is VND2,000/kg.

According to the Ministry of Finance, in the context of the world oil market continuing to develop complicatedly, prices are likely to fluctuate unpredictably in the coming time, posing potential risks to socio-economic stability as well as impacting the domestic market.

Therefore, the increase in environmental protection tax on gasoline, oil, and grease to the ceiling from next year will have a certain impact on people's psychology and daily life as well as production and business activities of enterprises.

Therefore, solutions are needed to contribute to stabilizing gasoline prices and stabilizing the macro economy in 2024.

The Ministry of Finance also said that gasoline is an essential commodity and an input for many manufacturing industries, affecting many subjects in the economy.

Therefore, reducing environmental protection tax on gasoline, oil, and grease regardless of the subject of application has supported the economy, people, and businesses.

The Ministry of Finance calculates that with the consumption of gasoline, oil, and lubricants in 2024 being equivalent to 2023 and with the proposed environmental protection tax rate, environmental protection tax revenue will decrease by about VND38,929 billion. Total state budget revenue (including the reduction in value added tax) will decrease by about VND42,822 billion.

Despite the impact of reducing budget revenue, the issuance of policies to reduce environmental protection tax on gasoline, oil, and grease brings many benefits, actively supporting people's lives and business production activities of enterprises.

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