50% reduction of environmental protection tax on gasoline and oil from 1/4

On the afternoon of March 23, at the 9th session, the National Assembly Standing Committee unanimously approved a resolution on reducing environmental protection tax with gasolineoil, grease as proposed by the Government.

Specifically, environmental protection tax reduction of 2,000 VND/liter for gasoline; 1,000 VND/liter for diesel, fuel oil, lubricants, grease (50% reduction compared to current tax rates); and 300 VND/liter for kerosene (70% reduction compared to the current tax rate).

The time to apply the new tax rate is from April 1 to the end of December 31, 2022, and then it will return to the old rate.

Ninth session of the National Assembly Standing Committee.

Finance Minister Ho Duc Phuc emphasized that the reduction of environmental protection tax on gasoline and oil contributes to curbing inflation, ensuring macroeconomic stability and stabilizing the petroleum market in the context of rising crude oil prices. high.

In addition, the tax reduction contributes to supporting socio-economic recovery and development after the COVID-19 epidemic and is in line with the general context of the country in providing solutions to remove difficulties for people. and businesses due to the impact of the COVID-19 epidemic. The tax reduction aims to harmonize the interests of the people, businesses and the state on the basis of being consistent with the state budget balance ability (state budget).

Presenting the verification report, Chairman of the Finance Committee Nguyen Phu Cuong said that the majority of opinions of the Standing Committee of this Committee agreed with the tax reduction rates proposed in the Government’s report on tax reduction.

Mr. Cuong analyzed, in fact, recently, crude oil prices on the world market have fluctuated unpredictably. At the time the Government drafted the report, the price of oil sometimes reached 130 USD/barrel. However, up to now, crude oil price has dropped to around 100 – 110 USD/barrel.

From there, Mr. Cuong asked the Government to clearly explain the grounds to determine and propose a 50% reduction for all gasoline and oil products and supplement data comparing petrol and oil prices with other countries. in the area to avoid smuggling and transferring gasoline and oil to the outside.

On the issue of the selected tax to be reduced, Mr. Cuong said, most of the opinions said that, in the current conditions and reality of Vietnam, the use of environmental protection tax to regulate gasoline and oil prices is a must. appropriate policy measures.

However, the Chairman of the Finance and Budget Committee said that some people believe that most countries reduce taxes through the policy of reducing excise taxes (as an indirect tax to reduce taxes). consumption restriction, used as a tool to regulate consumption and thereby production).

“Therefore, it is requested that the Government provide more information and clarify the experience of other countries in reducing environmental protection taxes,” said Mr. Cuong.

Mr. Cuong also said that, according to many opinions, import tax is also an appropriate policy tool that can be used to flexibly adjust the domestic price of gasoline and oil.

According to VTC