Finance ministry proposes 50% reduction in environmental protection tax on energy
VGP - The Ministry of Finance has proposed 50 percent reduction in the environmental protection tax on gasoline and oil amid enery price hikes induced by the current conflict in the Middle East.
The proposed policy should be implemented until the end of June 30, 2026, the ministry said.
Under the proposal, the environmental protection tax on gasoline (excluding ethanol) should be reduced from VND2,000 to VND1,000 per liter, while tax on diesel oil should be halved, from VND1,000 to VND 500 per liter.
For aviation fuel alone, the environmental protection tax rate should be reduced from VND 1,500 to VND 1,000 per liter.
If approved, the new tax rates will take effect from the date of signing until the end of June 30 of this year.
Currently, environmental protection tax accounts for about 6.7 percent in the base price of gasoline and oil.
For gasoline (excluding ethanol), a reduction in environmental protection tax of VND 1,000 per liter will reduce the retail price by about VND1,080 per liter, including a reduction in value-added tax.
For aviation fuel and diesel, a reduction in tax of VND 500 per liter will reduce the retail price by about VND 540 per liter, also including a reduction in value-added tax./.
