Finance ministry proposes extending fuel tax exemption by end of June
VGP - The Ministry of Finance is drafting a Resolution to extend the current tax exemption for gasoline (excluding ethanol), diesel fuel and aviation fuel till June 30 this year.
From March 26 until April 15, environmental protection tax rates on gasoline (excluding ethanol), diesel fuel and aviation fuel is cut to zero to stabilize domestic energy market, according to the Prime Minister's Decision No. 482/QĐ-TTg.
Also, gasoline, diesel fuel, and jet fuel shall not be subject to value-added tax declaration or payment, though input VAT will remain deductible.
The excise tax rate on all types of gasoline is also reduced to zero percent.
The move is considered an urgent and effective solution to stabilize the petroleum market and ensure national energy security amidst the escalating conflict in the Strait of Hormuz, which is creating the "biggest energy bottleneck ever," pushing crude oil prices above US$100 per barrel and leading to a sharp increase in global and domestic energy prices.
The environmental protection tax, value-added tax, and special consumption tax, along with the application period as described above, will reduce state budget revenue by an average of approximately VND7,200 billion (US$270 million) per month./.
