Proposal to continue reducing environmental protection tax by VND 2,000/liter of gasoline in 2025

The Ministry of Finance has just sent an official dispatch asking for opinions from relevant ministries and branches on the proposal to continue reducing environmental protection tax by VND2,000/liter of gasoline, and VND600-1,000/liter, kg for oil products in 2025.

The Ministry of Finance proposes to continue reducing environmental protection tax on gasoline and oil products in 2025 - Photo: QUANG DINH

Accordingly, the Ministry of Finance proposed to continue reducing environmental protection tax by 50% in 2025 for gasoline (except ethanol), oil, and grease; reducing about 70% for jet 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 will decrease 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.

The reason for this proposal, according to the Ministry of Finance, is that as forecasted by prestigious international organizations, the world economic situation will continue to change rapidly and unpredictably in 2025. Meanwhile, domestically, although the economy is gradually recovering, it is not really stable and solid.

To ensure stable growth, the Ministry of Finance proposed to continue reducing environmental protection tax on gasoline, oil, and grease in 2025 to contribute to stabilizing domestic gasoline prices and curbing inflation.

To ensure continuity and timeliness, the Ministry of Finance proposes that the resolution take effect 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, supporting people and businesses, but reducing budget revenue.

With the expected consumption of gasoline, oil, and grease in 2025 being equivalent to that of 2024 and with the proposed reduction in environmental protection tax, environmental protection tax revenue in 2025 will decrease by about VND 40,204 billion and total state budget revenue (including the reduction in value added tax) will decrease by about VND 44,224 billion.

According to the Ministry of Finance, the policy of reducing environmental protection tax on gasoline, oil, and grease will be implemented from 2022 to present.

The implementation of this tax reduction policy on gasoline, oil and lubricants in recent times has contributed to controlling inflation and stabilizing the macro-economy.

Reducing environmental protection tax on gasoline, oil, and grease will cause the budget to decrease by more than VND 34,473 billion in 2023 and by an estimated VND 28,900 billion in the first 9 months of 2024.

However, this is also the direct support of the State for people and businesses to contribute to supporting the recovery, development of production, business, and socio-economic development.

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