Ministry proposes extending environmental tax cut for fuel products in 2024

The Ministry of Finance (MoF) has proposed extending the environmental tax reduction on fuel products until the end of 2024.

Ministry proposes extending environmental tax cut for fuel products in 2024 -0
A fuel station in Hanoi, Vietnam (Photo: VNA)

According to the ministry, it has started a process to collect opinions and feedback on the extension, which is to be submitted to the National Assembly for final approval. The tax cut, if passed by the NA, will take effect on January 1, 2024.

The proposal is a continuation of an already-in-effect tax cut, which imposes a tax rate of 2,000 VND per litre for gasoline, 600 VND for kerosene, and 1,000 VND for diesel, fuel oil, lubricant and aeroplane fuel.

When the extension expires at the end of 2024, the tax rate will go back to the previous level at 4,000 VND per litre for gasoline, 1,000 VND for kerosene, 2,000 VND for diesel, fuel oil and lubricant, and 3,000 VND for aeroplane fuel.

The ministry said the tax cut proposal is subject to change, depending on the global oil prices. The MoF has been and will continue collaborating with other governmental ministries and agencies to monitor domestic fuel prices.

In addition, slowing down the rise of fuel prices will likely contribute to the Government's inflation control efforts and stabilise the macro-economic factors.

All things remaining the same, the ministry said it anticipates a drop in domestic fuel prices in 2024 by 2,200 VND per litre for gasoline; aeroplane fuel by 2,200 VND; diesel, fuel oil and lubricant by 1,100 VND; and kerosene by 440 VND.

According to economists and policymakers, fuel plays an important role as input in many industries. By slashing the environmental tax, the Government is aiming to provide additional support to all economic stakeholders and consumers, boosting economic recovery and helping businesses expand operations.

On the other hand, budget collection will likely take a hit, according to the ministry. Given the same amount of consumption anticipated for this year, the State budget will likely see a drop in environmental tax of 43 trillion VND (1.75 billion USD).

The tax cut has been praised by economists and the business community as one of the more practical and most efficient support policies by the Government for economic recovery post-COVID-19.

Economy

VNA
Economy

Vietnam makes bold step to improve business climate: VCCI report

Vietnam’s business and investment climate is showing marked improvements following sustained reform efforts, with enhanced access to business-related information and regulations, reduced unofficial costs, and effective administrative reforms, according to the latest survey by the Vietnam Chamber of Commerce and Industry (VCCI).

Binh Dinh seeks German investment in offshore wind power project
Economy

Binh Dinh seeks German investment in offshore wind power project

The central province of Binh Dinh always create favourable conditions for investor to explore opportunities and invest in the locality, the provincial Party Secretary Ho Quoc Dung said during a working session with Helga Margarete Barth, German Ambassador to Vietnam, and representatives from the German Chamber of Commerce and Industry in Vietnam (AHK Vietnam), and PNE Group on October 30.

Vietnam, Laos step up trade, tourism promotion
Economy

Vietnam, Laos step up trade, tourism promotion

A Vietnam-Laos trade fair was kicked off in Phonsavanh township in Xiengkhouang province of Laos on October 23 as part of activities to celebrate the 75th anniversary of the traditional day of Vietnamese volunteer soldiers and experts in Laos (October 30, 1949 – 2024).

Bamboo Airways to resume int'l flights from November
Economy

Bamboo Airways to resume int'l flights from November

Bamboo Airways will officially resume international flights on November 26, starting with one round-trip flight per day on the direct route between Tan Son Nhat International Airport in Ho Chi Minh City and Don Mueang International Airport of Bangkok, Thailand.