Consider imposing special consumption tax on gasoline and air conditioners

Kinhtedothi - On the morning of March 26, at the 7th Conference of full-time National Assembly deputies, term XV, National Assembly deputies discussed the Draft Law on Special Consumption Tax (amended).

Consider limiting air conditioners subject to special consumption tax

Reporting on some basic contents in the explanation, acceptance and revision of the draft, the Standing Committee of the National Assembly's Economic and Financial Committee said that there were opinions suggesting adding non-taxable objects such as gasoline and air conditioners because these are essential goods. In Vietnam, gasoline has been subject to special consumption tax since 1995.

To encourage the use of biofuel, the Law on Special Consumption Tax has stipulated a preferential tax rate of 8% for E5 gasoline and 7% for E10 gasoline (lower than the 10% tax rate applied to mineral gasoline). This provision is consistent with the goal of special consumption tax, which is to regulate consumption of goods that need to be used economically and is consistent with international practice.

Along with that, in the context of environmental pollution and climate change being global issues, the Vietnamese Government's commitment at the COP26 Conference to achieve net emissions of "0" by 2050, along with other solutions, the current collection of special consumption tax on gasoline (including E5 and E10 gasoline) is appropriate, contributing to reducing emissions and orienting economical consumption. Therefore, the receiving and explaining agency requests to keep it as the draft law.

Regarding air conditioners, the Standing Committee of the National Assembly's Economic and Financial Committee stated that the collection of special consumption tax on air conditioners with a capacity of 90,000 BTU or less is being applied stably to raise awareness about limiting consumption as well as orienting consumption to save electricity and protect the environment.

National Assembly Delegate Hoang Van Cuong (National Assembly Delegation of Hanoi) expressed his opinion at the conference.

However, according to the opinions of National Assembly deputies, the demand for refrigeration and air conditioning equipment in our country is increasing and becoming popular to meet the normal needs of people in conditions of increasingly high temperatures. Therefore, taking into account the opinions of National Assembly deputies, the drafting agency is considering a plan to limit the scope of air conditioning products subject to special consumption tax.

No special consumption tax on gasoline and air conditioners

Expressing disagreement with this plan, National Assembly delegate Hoang Van Cuong (National Assembly delegation of Hanoi) said that “limiting the scope” means still taxing air conditioners. Meanwhile, air conditioners are popular consumer products and there is no substitute, high taxes still have to be used, and restricting certain subjects will not change behavior. Therefore, National Assembly delegate Hoang Van Cuong proposed to remove the taxable subjects.

According to National Assembly delegate Nguyen Truong Giang (National Assembly delegation of Dak Nong province), tax imposition must be in accordance with the nature of special consumption tax.

According to National Assembly delegate Nguyen Truong Giang (National Assembly delegation of Dak Nong province), the tax must be imposed in accordance with the nature of special consumption tax. Gasoline is an essential commodity and its use cannot be restricted. Furthermore, gasoline is subject to both special consumption tax and environmental protection tax. If it is determined that using gasoline affects the environment, then increase the environmental protection tax instead of imposing special consumption tax.

Sharing the same opinion with National Assembly delegate Hoang Van Cuong on air conditioners, National Assembly delegate Nguyen Truong Giang said that special consumption tax should not be imposed because this is an essential commodity.

Deputy Minister of Finance Cao Anh Tuan reports at the conference

Reporting at the conference, Deputy Minister of Finance Cao Anh Tuan informed that the imposition of special consumption tax aims to regulate consumer behavior. Regarding air conditioners, previously considered a luxury item, but now they are popular and used by families, so the drafting committee will work with relevant agencies to review and have appropriate regulation plans.

“Regarding gasoline, this tax has been applied for a long time and many countries also impose both special consumption tax (collected at a percentage rate) and environmental protection tax (collected as an absolute tax). Furthermore, the tax rate for biofuel is being proposed to be collected at a lower rate to encourage the use of this type of gasoline,” said Deputy Minister of Finance Cao Anh Tuan.

According to the agenda, the National Assembly will vote to pass the Law on Special Consumption Tax at the 9th Session next May.

Source: https://kinhtedothi.vn/can-nhac-ap-thue-tieu-thu-dac-biet-voi-mat-hang-xang-dieu-hoa-nhet-do.html