National Assembly Standing Committee finalizes environmental protection tax rate on gasoline and oil in 2025

The National Assembly Standing Committee passed a resolution on environmental protection tax rates on gasoline and oil, applicable until the end of 2025.

Members of the National Assembly Standing Committee passed the resolution - Photo: PHAM THANG

On the afternoon of December 24, National Assembly Chairman Tran Thanh Man chaired a meeting of the National Assembly Standing Committee to consider and decide on environmental protection tax rates for gasoline, oil, and grease in 2025.

Details of environmental protection tax rates on gasoline in 2025

Presenting the Government's proposal on environmental protection tax rates for gasoline, oil, and grease in 2025, Minister of Finance Nguyen Van Thang said that according to the provisions of Resolution 579/2018 of the National Assembly Standing Committee, from January 1, 2025, the new environmental protection tax rate for gasoline, oil, and grease will be applied.

Specifically, the environmental protection tax rate for gasoline, excluding ethanol, is VND4,000/liter; jet fuel is VND3,000/liter; diesel is VND2,000/liter; kerosene is VND1,000/liter; fuel oil is VND2,000/liter; lubricants are VND2,000/liter; grease is VND2,000/kg.

However, Mr. Thang said that when the environmental protection tax on gasoline, oil, and grease increases to the ceiling level in the tax bracket from January 1, 2025, it will have a negative impact on the economy.

Because the environmental protection tax on gasoline, oil and grease will increase the retail price of these items, creating pressure to increase inflation.

This causes disadvantages in achieving economic growth goals.

Therefore, to contribute to controlling inflation, stabilizing the macro-economy, and reducing difficulties for businesses and people, the Government proposes that the National Assembly Standing Committee issue a resolution on environmental protection tax rates for gasoline, oil, and lubricants to be applied in 2025 as stipulated in Resolution 42/2023 of the National Assembly Standing Committee.

Specifically, gasoline, excluding ethanol, is 2,000 VND/liter; jet fuel, diesel, fuel oil, and lubricants are 1,000 VND/liter; grease is 1,000 VND/liter; and kerosene is 600 VND/liter.

Presenting the review report, the Chairman of the Finance and Budget Committee said that in order to ensure policy stability and achieve the goal of supporting people and businesses, creating more momentum for socio-economic development, the majority of opinions in the committee agreed with the Government's proposal on the resolution's application period from January 1, 2025 to December 31, 2025.

From January 1, 2026, the environmental protection tax rate on gasoline, oil, and grease will be implemented according to Resolution 579/2018.

At the same time, the Government is requested to commit and take responsibility for the proposal to reduce these tax rates without affecting the 2025 state budget revenue and expenditure estimates approved by the National Assembly.

Minister Nguyen Van Thang - Photo: PHAM THANG

Proposal to consider a roadmap to gradually increase tax rates

National Assembly Chairman Tran Thanh Man suggested that the Government consider a roadmap to gradually increase environmental protection tax according to Resolution 579/2018. He emphasized that this must be consistent with the principles of environmental protection tax, the development of world crude oil prices and Vietnam's international commitments, while avoiding major impacts on people's lives and production and business activities.

Chairman of the Law Committee Hoang Thanh Tung noted that the Government needs to forecast policies and assess impacts to determine the possibility of applying tax rates according to Resolution 579 in 2026. If feasible, he proposed gradually increasing tax rates on gasoline, oil, and lubricants from the end of 2025, giving people and businesses time to adapt.

Vice Chairwoman of the National Assembly Nguyen Thi Thanh requested the Government to improve its forecasting capacity, ensuring quick, accurate and timely responses to market fluctuations. Policy making must comply with procedures and create conditions for relevant agencies to review and the National Assembly Standing Committee to consider and decide. At the same time, the implementation must ensure that the set goals are achieved.

At the meeting, 100% of the members of the National Assembly Standing Committee present unanimously approved the resolution to apply environmental protection tax on gasoline, oil, and lubricants as proposed by the Government. This is an important step in the tax increase roadmap, in line with Vietnam's environmental protection and sustainable development strategy.

Source: https://tuoitre.vn/uy-ban-thuong-vu-quoc-hoi-chot-muc-thue-bao-ve-moi-truong-voi-xang-dau-2025-20241224192902893.htm