Accordingly, environmental protection taxes have been proposed to increase by VND 500 per liter of diesel oil to VND 2,000 and by VND 1,100 per liter of other oil products to VND 2,000.
Plastic bags are also expected to see higher environmental taxes, rising from the current VND 30,000 to VND 50,000 per kilo, if the proposal is approved.
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Environmental protection taxes have been proposed to increase by VND 500 per liter of diesel oil to VND 2,000 and by VND 1,100 per liter of other oil products to VND 2,000. (Photo for illustration. VnEconomy) |
Last year, the ministry sought opinions about a draft law on the environmental protection tax hike to the highest level of VND 8,000 per liter. The proposal faced fierce opposition from both the public and economists.
In 2014, a similar hike was imposed, raising the taxes from VND 1,000 to VND 3,000, which the ministry referred to as a good way to stabilize the State budget.
The ministry said that the tax hike was necessary because import taxes on oil and petroleum products are declining sharply.
It added that petroleum is used in products containing chemicals, causing negative effects upon the environment, even when not in use. The current import tax on petroleum products is 20 percent, and 7 percent on oil products, and the respective rates will be slashed to 10 percent and zero percent as part of Vietnam’s tax cut commitments.
With the tax cut, revenues from petrol imports have been continuously decreasing in the past few years, as importers were keen on markets with more preferential tariffs. In addition, retail prices of oil and petroleum products in Vietnam are now lower than those in neighboring countries and other Southeast Asian nations, the ministry noted.
According to the ranking of the Global Petrol Prices on November 27, 2017, Vietnam’s petrol retail selling price took 45th position among 167 countries and territories.
The ministry said the environmental protection tax increase is in line with regulations under the Law on Environmental Protection Tax, adding that the hike would have effects on selling prices of other products. However, it would encourage savings of energies and natural resources, as well as consumption of environmentally friendly products, such as E5 bio-fuel. This could help Vietnam reduce emissions, contributing to implementation of its international commitments on environmental protection.
In January, Vietnam imported 900,000 tons of various kinds of oil and petroleum products, totaling USD 552 million, marking respective rises of 3.5 percent and 10.8 percent, according to the General Statistics Office.
The current law on environmental protection taxes, issued in 2012, stipulates that products such as oil, gas, grease, coal and plastic bags are subject to these types of taxes.
Source: VNA