The Ministry of Finance adjusts tax policy when gasoline prices continuously increase
According to Finance Minister Ho Duc Phuc, the total amount of taxes, fees and charges will decrease sharply by 2022, up to 233,000 billion VND.
The Ministry of Finance has just sent a report to the National Assembly on the implementation of the resolution on questioning at the 3rd session of the 15th National Assembly. Accordingly, the Ministry of Finance said that in the context of the world oil price and the world price of finished petroleum products continuously increasing, leading to high domestic gasoline prices over the past time, in order to contribute to stabilizing gasoline prices, controlling Inflation and implementation of socio-economic development goals set by the Party and State, the Ministry of Finance has been submitting to competent authorities to adjust tax policies on petrol and oil.
Regarding environmental protection tax, it has been proposed to reduce 50% of the environmental protection tax rate for jet fuel from January 1 to the end of July 10, 2022 (from 3,000 VND/liter to 1,500 VND/liter).
Reduce 70% of environmental protection tax on kerosene and reduce 50% of environmental protection tax on gasoline, oil and grease (except for jet fuel) from April 1, 2022 to the end of July 10 2022.
Reduce about VND 33,488 billion of environmental protection tax on gasoline, oil and grease. Illustration.
Reducing the environmental protection tax rate for gasoline, oil and lubricants to the floor level in the environmental protection tax bracket from July 11, 2022 to the end of December 31, 2022 according to Resolution No. 20/2022/UBTVQH15 dated July 6, 2022 of the National Assembly Standing Committee on environmental protection tax rates for gasoline, oil and grease.
According to calculations by the Ministry of Finance, the estimated impact of reducing state budget revenue under this Resolution is about VND 7,950 billion including value added tax.
Accordingly, the total reduction in state budget revenue due to the reduction of environmental protection tax on gasoline, oil and grease in 2022 (including Resolution No. 13/2021; Resolution No. 18/2022 and Resolution No. 20) 2022) about 33,488 billion VND”, the Ministry of Finance informed.
Regarding import tax, in order to diversify the supply of imported gasoline for the domestic market (avoid being passive by depending on import sources from Korea and ASEAN), and at the same time ensure the difference in line with the tax rate. According to the Free Trade Agreements (FTAs) that Vietnam has signed, the Ministry of Finance has submitted to the Government for signing and promulgating Decree No. 51/2022 dated August 8, 2022.
This resolution is to amend the preferential import tax rate for gasoline in heading 27.10 in the Preferential Import Tariff from 20% to 10%.
Regarding special consumption tax and value-added tax, on July 7, 2022, the Secretary General of the National Assembly issued a notice on the conclusion of the National Assembly Standing Committee on the project Resolution on environmental protection tax rates. for gasoline, oil, grease.
In which, it is proposed that the Government urgently study contents related to value-added tax and special consumption tax on gasoline and oil products to submit to the National Assembly for consideration and decision in case The world’s gasoline and oil continued to have complicated developments, increasing or remaining at a high level, affecting the inflation index, the macro-economy, people’s livelihoods, people’s lives and economic growth” the ministry said.
The total amount of tax, tax, fee and fee reduction in 2022 is very large, up to 233,000 billion VND. Illustration.
Following the direction of the Standing Committee of the National Assembly, the Prime Minister and the Ministry of Finance have submitted to the Government the Project Resolution of the National Assembly on reducing the excise tax on gasoline and the price tax added value for petroleum.
Accordingly, submitting to the National Assembly for a resolution assigning the National Assembly Standing Committee to decide on a maximum reduction of 50% of the special consumption tax rate on gasoline and a maximum reduction of 50% of the value-added tax rate on gasoline as well as the specific time of application of tax reduction in case world petroleum prices continue to be complicated, increase or remain high, affecting the inflation index, the macro-economy and people’s lives”, the Ministry of Finance stated.
The Ministry of Finance said that in the coming time, it will continue to coordinate with relevant ministries and agencies to implement a plan to support low-income people and disadvantaged people when the prices of a number of essential goods increase.
According to Finance Minister Ho Duc Phuc, the total amount of tax, fee and fee relaxation and reduction in 2022 is very large, up to 233,000 billion VND.
“Strengthening support for people and businesses will contribute to boosting production and business, stabilizing the macro-economy, and controlling inflation” the Finance Minister emphasized.
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