The Government proposes to reduce 50% of environmental protection tax on gasoline until the end of 2024.

12/05/2023 08:39 Nhat Linh Print article

ANTD.VN - The Government has proposed extending the environmental protection tax reduction period for gasoline and oil until the end of 2024, thereby reducing the state budget revenue by more than VND38,900 billion.

In a recent submission to the National Assembly Standing Committee, the Government proposed extending the policy of reducing environmental protection tax on gasoline and oil until the end of 2024.

Accordingly, the environmental protection tax on gasoline (except ethanol) is 2,000 VND/liter. Jet fuel, diesel, fuel oil, and lubricants are 1,000 VND/liter; kerosene is 600 VND/liter.

Thus, the reduction proposed by the Government is 50% compared to the tax schedule, similar to the current tax rate being implemented in Resolution No. 30 of 2022 of the National Assembly Standing Committee. Resolution 30 on reducing environmental tax on gasoline, oil, and grease is effective until December 31, 2023.

Chính sách giảm thuế bảo vệ môi trường với xăng dầu dự kiến tiếp tục kéo dài đến hết 2024

The policy of reducing environmental protection tax on gasoline is expected to continue until the end of 2024.

When this tax is reduced, the price of gasoline and oil to consumers will decrease by 1,100 VND to 2,200 VND per liter (including VAT), with kerosene alone decreasing by 660 VND per liter.

From January 1, 2025, the environmental protection tax on gasoline, oil, and grease will return to the ceiling level in the tax bracket, which is VND 4,000 per liter for gasoline (except ethanol); and VND 3,000 per liter for aviation fuel.

Assessing the impact of the tax reduction, the Government said the state budget is estimated to have reduced revenue by about VND38,924 billion. However, extending the reduction of environmental protection tax on gasoline and oil until the end of next year will help reduce domestic retail prices, thereby directly contributing to reducing people's costs, production costs, and product prices.

On the other hand, according to the General Statistics Office, if the environmental protection tax on gasoline, oil, and lubricants increases to the upper level of the tax bracket from the beginning of 2024, the average CPI will increase by 0.36-0.54 percentage points. On the contrary, if this tax is continued to be reduced until the end of next year, fluctuations in retail prices of gasoline and oil will be avoided and the CPI will not increase.

This tax reduction also helps businesses increase their resilience, especially businesses that benefit from tax reduction on gasoline and oil such as transportation, gas services, and fishing.

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