From April 1, implementing a 50% reduction of environmental protection tax on gasoline, oil and grease

On the morning of March 30, the General Department of Taxation issued a public notice on the application of environmental protection tax rates to gasoline, oil and grease according to the provisions of the Resolution of the National Assembly Standing Committee.

The content of the cable said that on March 23, the National Assembly Standing Committee issued a Resolution stipulating the environmental protection tax rate for gasoline, oil and grease.

According to the Resolution, from April 1 to December 31, the environmental protection tax rate will be reduced by 50% for gasoline (except ethanol), diesel oil, fuel oil, lubricating oil and grease; 70% reduction of the environmental protection tax on kerosene.

From April 1, the environmental protection tax will be reduced by 50% for gasoline, oil and grease. Illustration.

The reduction of environmental protection tax directly contributes to reducing the retail price of 2,200 VND/liter for gasoline; VND 1,100/liter for diesel oil, fuel oil, lubricant oil; 1,100 VND/kg for grease; 770 VND/liter for kerosene.

The General Department of Taxation requires Tax Departments to actively propagate, disseminate and guide taxpayers in their localities, and at the same time direct Tax Sub-Departments in provinces and cities to promptly implement the application of tax rates. environmental protection tax on gasoline, oil and grease as prescribed in the Resolution.

According to the Ministry of Finance, it is expected that the consumption of gasoline, oil and grease this year will be equivalent to that of 2019, then the reduction of environmental protection tax as above will reduce revenue State budget the whole year is about 31,930 billion VND.

However, a decrease in gasoline prices will limit the increase in production costs, reduce product costs, support the recovery of people and businesses, and contribute to lowering the CPI.

“The reduction of environmental protection tax on gasoline, oil and grease will reduce the average CPI in 2022 by an estimated 0.76% – 0.85%. However, because the environmental protection tax is an absolute number, the CPI is 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 gasoline prices increase by 10% compared to the current level,” said Mr. Ho Duc Phuc – Minister of Finance.

A representative of the Vietnam Federation of Trade and Industry also said that the reduction of environmental protection tax on petrol and oil not only has the meaning of supporting businesses and people, but also contributing to reducing the negative impacts of environmental pollution. Petrol prices increased sharply on economic recovery programs.

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