Budget deficit of nearly 20,000 billion VND due to reduction of environmental tax on gasoline

Since the beginning of the year, according to the resolution of the National Assembly Standing Committee, the environmental protection tax on gasoline has been reduced by half compared to the tax bracket. Specifically, the environmental protection tax on gasoline (except ethanol) is 2,000 VND per liter. Jet fuel, diesel, mazut, and lubricants are 1,000 VND per liter. The tax on kerosene is 600 VND per liter.

According to data from the General Department of Taxation ( Ministry of Finance ), as of July 22, the reduction of environmental protection tax as mentioned above has caused the budget to reduce revenue by about 19,790 billion VND. Of which, the reduction of this tax on gasoline and oil is about 18,640 billion VND, and aviation fuel is 1,150 billion VND.

Previously, the Government calculated that this year's total state budget revenue (including VAT) would decrease by nearly VND39,000 billion. However, extending the reduction of environmental protection tax on gasoline and oil until the end of 2024 will contribute to directly reducing costs for people and businesses, increasing their ability to recover. From January 1, 2025, this tax will return to the ceiling level in the tax bracket, which is VND4,000 per liter for gasoline (except ethanol); oil and grease VND2,000 (except kerosene VND600) and jet fuel VND3,000 per liter.

Every year, Vietnam consumes 22-23 million m3 and tons of all kinds of gasoline and oil. According to data from the Ministry of Industry and Trade, in the first half of this year, the whole country consumed about 13.2 million m3 and tons of gasoline and oil. This level decreased by about 0.2% compared to the first 6 months of 2023.

In addition to environmental protection tax, according to the General Department of Taxation, in the first 7 months of the year, the land rent reduction policy is estimated to reduce the State budget revenue by about 2,370 billion VND. In addition, the financial sector also extended the deadline for paying some types of taxes such as corporate income tax, personal income tax, special consumption tax on domestically produced or assembled cars, land rent... about 32,100 billion VND.

However, in the first 7 months of the year, total budget revenue managed by the tax sector was more than 1 quadrillion VND, an increase of nearly 15% over the same period.

TB (according to VnExpress)

Source: https://baohaiduong.vn/ngan-sach-hut-thu-gan-20-000-ty-dong-do-giam-thue-moi-truong-xang-dau-389359.html