Considering that gasoline and air conditioners are essential goods, Ms. Le Thi Nga proposed to remove the regulation on special consumption tax on these two goods.
Ms. Le Thi Nga - Photo: GIA HAN
On the afternoon of March 10, the National Assembly Standing Committee gave opinions on explaining, accepting, and revising the draft Law on Special Consumption Tax (amended).
Proposal to not impose special consumption tax on gasoline and air conditioners
Notably, regarding taxable subjects, the latest bill continues to stipulate special consumption regulations including gasoline of all kinds.
Along with that is air conditioners with capacity from 90,000 BTU or less except for those designed by the manufacturer only for installation on means of transport including cars, railway cars, ships, boats, and airplanes.
In case the manufacturing organization or individual sells or the importing organization or individual imports each part separately, the hot block or cold block, the goods sold or imported (hot block, cold block) are still subject to special consumption tax as for the finished product (complete air conditioner).
Giving her opinion later, Permanent Deputy Head of the People's Aspirations and Supervision Committee Le Thi Nga said that the draft law still stipulates that gasoline of all kinds is an item subject to special consumption tax.
According to Ms. Nga, the nature of special consumption tax is to tax luxury goods, not to encourage consumption. Meanwhile, gasoline is an essential commodity, indispensable in people's lives.
"Imposing special consumption tax on essential goods for people is not in accordance with the nature and purpose of this tax," Ms. Nga stated.
She reiterated that at the previous standing committee meeting as well as at the discussion group of the National Assembly session, she had proposed and seen many opinions in the media in this amendment requesting to review and remove the special consumption tax on gasoline, but it has not been explained.
"We request that the drafting and reviewing agencies provide further explanations. Currently, there is no explanation in the report stating that it is necessary to keep the special consumption tax on gasoline. I propose to remove this tax on gasoline," Ms. Nga suggested.
Regarding normal capacity air conditioners, Ms. Nga said that ten years ago air conditioners were a luxury item, but now normal capacity air conditioners are also an essential item.
"We propose to remove the special consumption tax on this item. We propose to remove the special consumption tax on gasoline and normal capacity air conditioners. If not removed, we need to explain why we put essential goods under special consumption tax?", Ms. Nga added.
Chairman of the Law and Justice Committee Hoang Thanh Tung expressed his agreement with Ms. Le Thi Nga's opinion on the content related to gasoline and air conditioning, and he had had that opinion from the beginning.
Mr. Tung said gasoline is a very essential commodity and an input for the economy, in people's lives everyone has to use gasoline.
"It is not really a luxury item to be subject to special consumption tax and gasoline is also subject to environmental protection tax. So this is the right time to consider whether to continue to regulate gasoline as an item subject to special income tax or not?".
The same goes for air conditioning, which should also be reconsidered. When the National Assembly discussed this bill at the 8th session, many opinions suggested considering this issue. Almost every house from rural to urban areas has 1-2 air conditioners.
We believe that air conditioners with a capacity of 90,000 BTU or less are luxury goods, and imposing a special consumption tax is not really appropriate. If we continue to implement it, we must have a very specific explanation to convince the National Assembly delegates," Mr. Tung added.
Deputy Minister of Finance Cao Anh Tuan - Photo: GIA HAN
Ministry of Finance explains why special consumption tax on gasoline should not be abolished
Explaining later, Deputy Minister of Finance Cao Anh Tuan said that in recent years the demand for refrigeration and air conditioning equipment in our country has increased.
Although some air conditioners have changed technology to reduce the use of environmentally harmful refrigerants, applying energy-saving technology.
However, air conditioners still use different refrigerants, many of which are harmful to the environment, the ozone layer and have the potential to cause global warming.
Inverter technology, although supportive, only helps save 20-40% of electricity compared to conventional equipment, still causing harm to the environment. The Prime Minister has Decision 496 on the management and elimination of substances that deplete the ozone layer.
Referring to the experience of other countries, some countries collect special consumption tax on air conditioners such as Korea, India, Norway collect special consumption tax on HFC used in air conditioners. In Europe, to save energy, many countries have regulations to limit the use of air conditioners.
Like Spain, it is forbidden to set the air conditioner below 27 degrees Celsius, in the UK, to install air conditioners, the homeowner must apply for a license, after installing the air conditioner, it must be regularly checked for energy efficiency and operating capacity. In Switzerland, it is not easy to apply for a license to install air conditioners.
"Therefore, it is necessary to continue collecting special consumption tax on air conditioners with a capacity of 90,000 BTU or less to raise awareness of limiting consumption and saving electricity, protecting the environment," Mr. Tuan said.
Regarding gasoline, according to Mr. Tuan, E5 and E10 bio-fuel are mixed at 95-90% respectively, and RON 92 gasoline is 5-10% bio-fuel.
He said that gasoline has a lot of fossil fuels, is not renewable, and needs to be used economically, so most countries collect special consumption tax on gasoline, and collect low special consumption tax on biofuel. Such as France, Germany, Italy, England, Korea, Australia, Thailand, Singapore, China, Cambodia, Laos...
In Vietnam, Mr. Tuan said that the collection of special consumption tax on gasoline since 1995, for over 20 years now, has been very stable.
"The law also includes E5 gasoline at 8%, E10 at 7% lower than regular gasoline. To encourage businesses and people to use environmentally friendly biofuel and we have stable revenue, so there should be no issue of removing it from the subject," Mr. Tuan added.
Review and possibly present 2 options
Chairman of the Economic and Financial Committee Phan Van Mai said that whether or not to tax gasoline and air conditioners will be a topic that National Assembly deputies are very interested in.
He said if we approach it from the perspective of having to tax the environment, we must argue for high environmental taxes. At the same time, when we tax gasoline high, we will use it moderately, economically, and the same goes for air conditioning.
"If we approach it from the perspective that these are essential inputs to the economy and life, not imposing special consumption tax but imposing environmental tax would bring it all together.
The two agencies will carefully analyze, evaluate and report to the National Assembly Standing Committee. If there are two options in the end, they will ask for the opinions of National Assembly deputies," Mr. Mai added.
Source: https://tuoitre.vn/xang-dieu-hoa-la-mat-hang-thiet-yeu-tai-sao-danh-thue-tieu-thu-dac-biet-2025031015332775.htm
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