Officially reducing environmental tax by VND 2,000 per liter of gasoline from 1/4

On the afternoon of March 23, the Standing Committee of the National Assembly (UBTVQH) discussed, considered and approved a draft Resolution on environmental protection tax rates for gasoline, oil and grease until the end of December 31, 2022.

According to a report read by Minister of Finance Ho Duc Phuc, in the context of the world petroleum market’s complicated developments, crude oil prices in the world market tend to increase, the situation of COVID-19 epidemic There are still complicated developments in the world and in the country, in order to contribute to the recovery and development of production, business, and socio-economic development, according to the Law on Promulgation of Legal Documents, Politics and Government. The Government shall submit to the Standing Committee of the National Assembly a Resolution on the environmental protection tax rate for gasoline, oil and grease by the end of December 31, 2022.

In 2022, the administration of petrol and oil retail prices will be adjusted every 10 days. Since the beginning of the year until now, the domestic retail gasoline price has been adjusted up 6 times and has surpassed the historical peak, setting a new record in the adjustment period on March 11, 2021, in which the price of gasoline E5 RON 92 is 28,980 VND/liter, an increase compared to the first adjustment period of 2022 (January 11, 2022) is 5,821 VND/liter; RON 95 gasoline is 29,820 VND/liter, an increase of 5,944 VND/liter compared to the adjustment period on January 11, 2022; diesel oil is VND 25,260/liter, an increase of 7,021 VND/liter compared to the adjustment period on January 11, 2022.

Based on the principles of environmental protection tax adjustment, after calculating on the basis of the ability to balance the state budget, the Government submits to the Standing Committee of the National Assembly to adjust the environmental protection tax rate for gasoline, oil and grease from April 1, 2022 to as of December 31, 2022 as follows:

+ Gasoline: Reduce 2,000 VND/liter, from 4,000 VND/liter to 2,000 VND/liter.

+ Diesel oil, fuel oil, lubricating oil: Reduced by 1,000 VND/liter, from 2,000 VND/liter to 1,000 VND/liter.

+ Grease: Reduce 1,000 VND/kg, from 2,000 VND/kg to 1,000 VND/kg.

+ Kerosene: Reduced by 700 VND/liter, from 1,000 VND/liter to the floor level of 300 VND/liter.

Minister Ho Duc Phuc emphasized that with the proposed environmental protection tax rate for gasoline, oil and grease, it is expected that the environmental protection tax revenue for gasoline, oil and grease will decrease for the whole year by about VND 29,035 billion/year, from That has the effect of reducing State budget revenue (including environmental protection tax and VAT) for the whole year by about 31,938 billion VND/year. If calculating the reduction of environmental protection tax for gasoline, oil and grease from April 1, 2022, the reduction in state budget revenue (including environmental protection tax and VAT) will be about 23,954 billion VND.

However, the continuous increase in world crude oil prices and domestic gasoline prices in the past time and is forecasted to continue to increase in the near future will have an impact on increasing state budget revenue, especially sources of income. revenue from crude oil, thereby, will offset the decrease in revenue due to the reduction of environmental protection tax according to the above plan”, the Finance Minister explained.

The reduction of environmental protection tax on gasoline, oil and grease will contribute to reducing selling prices, thereby limiting the increase in production costs, reducing product costs, and stabilizing inflation. At the same time, contributing to the reduction of CPI (Assuming that the Resolution takes effect from April 1, 2022 and the domestic retail price of petrol in the remaining 9 months of 2022 is stable like the price at the end of this year). adjusted on March 11, 2022, the reduction of environmental protection tax on gasoline, oil and grease will help reduce the average CPI in 2022 by an estimated 0.76% – 0.85%.

However, because environmental protection tax is an absolute number, CPI is a relative number, so the impact of the reduction of environmental protection tax on CPI gradually decreases when gasoline prices continue to increase compared to the current; reduce CPI by 0.61% if petrol price increases by 10% compared to current level; reduce CPI by 0.56% if petrol price increases by 20% compared to current level; decrease by 0.52% CPI if petrol price increases by 30% compared to current level.

Verification of the report, Chairman of the Finance – Budget Committee Nguyen Phu Cuong said that the majority of opinions basically agreed to submit to the Standing Committee of the National Assembly for consideration and adjustment of tax reduction for gasoline, oil and grease in the current conditions. in order to promptly contribute to stabilizing the petroleum market in the context of scarce petroleum supply; contribute to support socio-economic recovery and development after the COVID-19 epidemic; harmonize the interests of people, enterprises and the State.

Discussing opinions, delegates agreed to issue a Resolution to reduce gasoline prices in the current context. The Standing Committee of the National Assembly voted and unanimously approved the Resolution on environmental protection tax rates for gasoline, oil and grease until the end of December 31, 2022 as proposed by the Government.

According to Luan Dung