This is the notable content mentioned in Resolution No. 42/2023 recently issued by the National Assembly Standing Committee on environmental protection tax rates for gasoline, oil, and grease. This Resolution takes effect from January 1, 2024.

Specifically, from January 1 to December 31, 2024, the environmental protection tax on gasoline (except ethanol) will continue to be VND2,000/liter. Aviation fuel, diesel, fuel oil, and lubricants will be VND1,000/liter. The environmental protection tax on kerosene will be VND600/liter.

This rate is effective from April 2022 to present.

With the continued extension of the environmental tax reduction period, the price of gasoline and oil to consumers will decrease by 1,100-2,200 VND per liter (including value added tax), 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); aviation fuel is VND 3,000 per liter.

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Environmental protection tax on gasoline in 2024 is 2,000 VND/liter (Photo: Thanh Tung)

The Ministry of Finance believes that petroleum is an essential commodity and an input for many manufacturing industries, affecting many subjects in the economy. Therefore, reducing environmental protection tax on petroleum, oil, and grease regardless of the subject of application has supported the economy, people, and businesses.

In early November, the Ministry of Finance sent the Ministry of Justice for appraisal of the Draft Resolution of the National Assembly Standing Committee on environmental protection tax rates on gasoline, oil and grease in 2024.
In the submission, the Ministry of Finance proposed to continue reducing environmental protection tax on gasoline in 2024, the reduction level as above.

The report also stated that with the expected consumption of gasoline, oil, and grease in 2024 being equivalent to that of 2023 and with the environmental protection tax rate as proposed above, it is expected that environmental protection tax revenue will decrease by about VND 38,929 billion and total state budget revenue (including the reduction in value added tax) will decrease by about VND 42,822 billion.

Proposal to extend environmental protection tax reduction on gasoline until the end of 2024 The Government has proposed to extend the environmental protection tax reduction on gasoline until the end of 2024 and the budget is expected to reduce revenue by more than VND 38,900 billion when applying this policy.