On the morning of July 6, with the consensus of 100 percent of the delegates present, the Standing Committee of the National Assembly approved the Resolution on environmental protection tax rates for gasoline, oil, and grease products.
Accordingly, the National Assembly Standing Committee adjusts the environmental protection tax rate for gasoline, oil, and grease to the floor level in the tax bracket until December 31, 2022.
Specifically, gasoline products, except ethanol, are reduced from VND2,000 per liter to the floor level of VND1,000 per liter, and jet fuel is decreased from VND1,500 per liter to VND1,000 per liter.
Diesel oil is lowered from VND1,000 per liter to VND500 per liter, and fuel oil and lubricants drop from VND1,000 per liter to VND300 per liter.
Grease declines from VND1,000 per kg to VND300 per kg. Meanwhile, kerosene remains at VND300 per liter because this is the floor in the tax bracket.
The Standing Committee of the NA has agreed that the Resolution will take effect from July 11.
The timely adjustment and reduction of environmental protection tax rates on gasoline, oil, and grease in the context of high gasoline prices are considered an effective solution to reduce tax costs in the retail price structure of gasoline and oil products, which in turn has an immediate impact in cutting retail gasoline prices.
However, the reduction of the environmental protection tax on gasoline does not mean that people will not have to pay this tax, and the State budget will be shrunk. Instead, it will be converted to another form of budget collection.
Specifically, environmental protection tax is an indirect tax levied on products and goods that cause negative effects on the environment. Therefore, the cost of environmental protection tax will be transferred to the cost of products and goods when they are sold on the market. Consumers are ultimately subject to this tax.
