Deputy Prime Minister Le Minh Khai has just signed the Government’s Resolution approving the Resolution Project of the National Assembly Standing Committee on environmental protection tax rates for gasoline, oil and grease.
Specifically, the Government passed a resolution to submit to the National Assembly Standing Committee a project Resolution of the National Assembly Standing Committee on environmental protection tax rates for gasoline, oil and grease at the request of the Ministry of Finance. .
The Government assigned the Minister of Finance, authorized by the Prime Minister, on behalf of the Government to sign the Report to the Standing Committee of the National Assembly on July 4, 2022 on the above resolution project for comment. and approved according to the process of a meeting, drafted according to the order and shortened procedures as prescribed.
According to the proposal of the Ministry of Finance, the environmental protection tax rate for gasoline, oil and grease groups will be adjusted to the floor level in the tax bracket until the end of December 31, 2022. Specifically:
– Gasoline: Reduced from 2,000 VND/liter to the floor level of 1,000 VND/liter.
– Flight fuel: Reduced from 1,500 VND/liter to the floor level of 1,000 VND/liter.
– Diesel oil: Reduced from 1,000 VND/liter to the floor level of 500 VND/liter.
– Fuel oil, lubricant: Reduce from 1,000 VND / liter to the floor level 300 VND / liter.
– Grease: Reduce from 1,000 VND/kg to the floor level of 300 VND/kg.
– Kerosene: Keep at 300 VND/liter because this is the floor level in the tax bracket.
From January 1, 2023, the environmental protection tax rate for gasoline, oil and grease will continue to comply with Resolution No. 579/2018/UBTVQH14 of the National Assembly Standing Committee (UBTVQH).
In case the Resolution is issued in July, it is recommended to take effect from August 1, 2022 to ensure the implementation.
Previously in March, the Government also submitted to the National Assembly Standing Committee to reduce 50% of environmental protection tax on gasoline and this policy was effective from April 1 to the end of this year.
Immediate effect in reducing the retail price of petrol
According to the Ministry of Finance, at present, socio-economic activities have returned to the state as before the COVID-19 epidemic. Therefore, it is expected that the consumption of gasoline, oil and grease in 2022 is equivalent to the time before the COVID-19 epidemic, which is 2019.
With such expected consumption output, if the policy of reducing environmental protection tax rates on gasoline, oil and grease is applied as proposed above, it is estimated that the average monthly state budget revenue will be reduced (inclusive). including VAT reduction) is about 1,400 billion VND/month.
In case the Resolution is issued in July 2022 and takes effect from August 1, 2022, the estimated reduction in state budget revenue (including VAT reduction) is about VND 7,000 billion.
If the reduction of environmental protection tax on gasoline, oil and grease to the floor level takes effect from August 1 to the end of this year, it is estimated that the budget deficit will be about VND 7,000 billion.
Environmental protection tax is an indirect tax, collected on products and goods when used, causing adverse impacts on the environment, so the cost of environmental protection tax will be transferred to the cost of products, goods and people. Consumers are the last to bear the environmental protection tax. The timely adjustment and reduction of environmental protection tax rates on gasoline, oil and grease in the context of high gasoline prices is considered an effective solution to reduce tax costs in the retail price structure of gasoline. , thereby having an immediate impact on the reduction of retail gasoline prices.
The increase and decrease in gasoline prices will generally affect domestic production and consumption. At the same time, the change in the price of this item will lead to a certain fluctuation in the price of other commodities, as shown by the change in the CPI.
Specifically, the reduction of environmental protection tax on gasoline, oil and grease will contribute to reducing the retail price of gasoline, oil and grease, thereby limiting the increase in production costs, contributing to reduce product costs and contribute to stabilizing inflation.
Source: CafeF
Source: Vietnam Insider