Vietnam plans cut in environment tax on fuel as prices soar
Vietnam’s finance ministry on Thursday said it would propose to the government a cut in environment tax on fuel, amid soaring energy prices globally.
The ministry is seeking approval to lower the tax by 25% on gasoline to 3,000 dong ($0.13) per litre, and reduce the tax on diesel fuel and lubricants to 2,000 dong per litre. Tax on kerosene would be cut by half to 500 dong per litre.
« Domestic gasoline prices recently rose in line with a global surge in energy prices but that has caused great impacts on businesses and people’s spending, and put pressure on inflation, » the ministry said in a statement.
Vietnam’s consumer price index in the first two months rose 1.68% from a year earlier, led by an increase in transport costs, official data showed, with gasoline prices up 45.3%.
On Tuesday, Vietnam raised its RON92 gasoline price by 2.1% to a record high 26,071 dong ($1.14) per litre.
The ministry estimated that with a cut in effect from April to year-end, environment tax collection would be reduced by about 12 trillion dong ($525.42 million) and the average consumer price index would be 0.67% lower.
The Southeast Asian country aimed to keep inflation below 4% for 2022.
Vietnam had earlier cut environment tax on jet fuel to help the airline industry until the end of 2022.
Reuters – March 3, 2022