Proposal to continue reducing environmental protection tax by VND 2,000/liter of gasoline 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 by 2,000 VND/liter for gasoline, and by 600-1,000 VND/liter/kg for other petroleum products in 2025.

The Ministry of Finance proposes further reducing environmental protection tax on gasoline and diesel fuel in 2025 - Photo: QUANG DINH

Accordingly, the Ministry of Finance proposes 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.

It is expected that the environmental protection tax on gasoline, excluding ethanol, will decrease from VND4,000 to VND2,000 per liter; jet fuel from VND3,000 to VND1,000 per liter; diesel, fuel oil, and lubricants will decrease to VND1,000 per liter; grease will decrease by VND1,000 per kilogram; and kerosene will decrease to VND600 per liter.

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 gasoline, diesel, and lubricant consumption 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.

According to the Ministry of Finance, the policy of reducing environmental protection tax rates on gasoline, diesel, and lubricants has been in effect since 2022.

The implementation of this tax reduction policy on gasoline, diesel, and lubricants over the past period has contributed to controlling inflation and stabilizing the macroeconomic situation.

The reduction in environmental protection tax rates on gasoline, diesel, and lubricants has resulted in a decrease in budget revenue, which was over 34,473 billion VND in 2023 and is estimated at approximately 28,900 billion VND in the first nine months of 2024.

However, this is also a direct form of government support for people and businesses to help support the recovery and development of production and business, and socio-economic development.

Source: https://tuoitre.vn/de-xuat-tiep-tiep-giam-thue-bao-ve-moi-truong-2-000-dong-lit-xang-trong-nam-2025-20241104195714898.htm