The Ministry of Finance is seeking comments on the draft Resolution of the National Assembly Standing Committee (NASC) on environmental protection tax rates for gasoline, oil, and lubricants in 2025.

The Ministry of Finance said that this agency has submitted to the Government and the Standing Committee of the National Assembly resolutions to adjust environmental protection tax rates on gasoline, oil, and grease to suit the socio -economic situation of each period.

Of which, from January 1, 2024, the environmental protection tax rate for gasoline (except ethanol) is VND 2,000/liter; jet fuel, diesel oil, fuel oil, lubricants is VND 1,000/liter; grease is VND 1,000/kg and kerosene is VND 600/liter.

From January 1, 2025, the environmental protection tax rate on gasoline, oil, and grease will be implemented according to the provisions of Resolution No. 579/2018/UBTVQH14 dated September 26, 2018 of the Standing Committee of the National Assembly with the tax rate equal to the ceiling rate in the Tax Schedule issued with the Law on Environmental Protection Tax (except kerosene).

Accordingly, gasoline increased from 2,000 VND/liter to 4,000 VND/liter; jet fuel increased from 1,000 VND/liter to 3,000 VND/liter; diesel, fuel oil, and lubricants increased from 1,000 VND/liter to 2,000 VND/liter; kerosene increased from 600 VND/liter to 1,000 VND/liter (ceiling is 2,000 VND/liter); grease increased from 1,000 VND/kg to 2,000 VND/kg.

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The Ministry of Finance proposed to continue reducing environmental protection tax on gasoline until the end of 2025. Photo: Nguyen Hue

According to the Ministry of Finance, 2025 is the final year of implementing the 5-year socio-economic development plan 2021-2025, so it will pose many challenges in controlling inflation and promoting growth to complete the economic development goals according to the 5-year plan.

The increase in environmental protection tax on gasoline, oil, and lubricants to the ceiling level of the Tax Schedule (except kerosene) from January 1, 2025 will negatively affect people's lives as well as production and business activities of enterprises, thereby affecting inflation and directly impacting macroeconomic stability.

Therefore, to limit unfavorable factors that may negatively affect the implementation of socio-economic development goals, the Ministry of Finance believes that it is necessary to continue to maintain the implementation of effective support policies to further strengthen the driving force for socio-economic development, in which it is necessary to implement solutions to reduce environmental protection tax on gasoline, oil, and grease as implemented in 2023 and 2024 to apply to 2025.

From January 1, 2026, the environmental protection tax rate on gasoline, oil, and grease will be implemented according to Resolution No. 579/2018/UBTVQH14 of the Standing Committee of the National Assembly.

Regarding the impact on State Budget revenue, the Ministry of Finance said that with the expected consumption output of gasoline, oil, and grease in 2025 being equivalent to the expected consumption output of gasoline, oil, and grease in 2024 and with the environmental protection tax rate on gasoline, oil, and grease as proposed above, the expected environmental protection tax revenue compared to if implemented according to Resolution No. 579/2018/UBTVQH14 is about 40,204 billion VND and the total State Budget revenue (including the reduction of value added tax) will decrease by about 44,224 billion VND.