The Ministry of Finance has proposed, in a draft law, to almost
triple the environmental protection tax on oil and gas consumption from the
current VNĐ3,000 (US$0.13) to VNĐ8,000 per litre.
The Ministry of Finance has proposed a hike of
environmental protection tax of up to VNĐ8,000 per litre. - Photo
The draft will be
submitted for approval to the Government in June and the National Assembly in
new draft law also added E5 bio-fuel and E10 ethanol
blend fuel to include in the environmental protection taxes of
VNĐ2,700-7,200 and VNĐ2,500-6.800 per litre, respectively, though the
products are considered cleaner and environmentally friendly than others.
addition, the tax on aviation fuel was suggested to be increased from the
current VNĐ1,000-3,000 to VNĐ3,000-6,000 per litre.
tax on diesel fuel is expected to increase from the current VNĐ500-2,000 to
VNĐ1,500-4,000 per litre, while that of mazut would also go up to
VNĐ900-4,000 from VNĐ300-2,000 per kilo.
bags are also expected to see higher environmental taxes, rising from VNĐ30,000-50,000
to VNĐ40,000-80,000 per kilo, if the draft is approved.
Minister of Finance Đỗ Hoàng Anh Tuấn acknowledged that the sector would
continue promoting the collection of environmental protection taxes. This
year, the ministry would expand categories to be taxed.
said if the current environmental protection tax on petroleum was increased
over the ceiling level, the value of collections would be 10 to 20 times
higher than the direct collection from non-agricultural land use.
ministry said the increased tax on some natural resources, and environmental
protection on petroleum, had contributed to the domestic collection, thus
easing difficulties for the State budget.
believed that the proposed increase in the environmental protection tax would
also raise gasoline costs in the country.
Trí Thành, deputy head of the Central Institute for Economic Management, said
the Government should review the application of both special consumption
taxes and environmental protection taxes, since the special consumption tax
includes environmental fees.
economist Nguyễn Minh Phong said a hike in the environmental protection tax
had been a method for increasing the State budget through petroleum prices.
However, whether the tax was spent on environmental protection should be
clarified, as there has been no specific report on the issue.
necessary issue is how to use the collection effectively, transparently and
following the current laws,” Phong added.
2014, a similar hike was imposed, raising taxes from VNĐ1,000 to VNĐ3,000,
which the ministry referred to as a good way to stabilise the national budget.
to the current law on environmental protection taxes issued in 2012, products
such as oil, gas, grease, coal, and plastic bags are subject to these types
from the ministry also indicated that the environmental protection tax
contributed from 1.5 to 4.1 per cent of the annual revenue of the national