70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
VCCI proposes to scrap excise tax on petrol
Ngoc Mai 11:13, 2022/06/24
In the past two months, Vietnam’s retail fuel prices have set up new records five times.

Curbing the rise of petrol prices are essential for Vietnam to contain inflation, stabilize macro-economic conditions, and support economic recovery, for which scrapping excise tax on this product should be considered.

 A petrol station in Hanoi. File photo

The Vietnam Chamber of Commerce and Industry (VCCI) gave its view on the draft resolution of the Ministry of Finance (MoF) on revising the tax rates for petroleum products.

The move, however, could only be seen as a long-term solution, as any decision on the cut of excise and value-added taxes for petrol products are subject to the ratification of the National Assembly, with the upcoming session scheduled to take place in late 2022.

In this regard, the VCCI expressed its support for MoF’s suggestion to further cut the environmental protection tax on fuels and gas products, saying such a move could be done right in July under the administration of the National Assembly’s Standing Committee.

VCCI also suggested lowering import tax on petrol products as the decision is under the Government’s authority.

On Vietnam’s commitments in tax management under free trade agreements (FTAs) that the country is a part of, VCCI said they are mostly related to the maximum tariff duty that a country can impose.

“This means Vietnam can still lower the import duty or raise it in case necessary,” it added.

The MoF on April 1 decided to halve the environmental protection tax on fuels from April 1 to VND2,000 per liter but proved futile amid skyrocketing prices of petrol and oil on the global market.

In the past two months, Vietnam’s retail fuel prices have set up a new record five times. On June 21, the prices of RON95-III, the most commonly used petrol product in the country, hit an all-time high of VND32,870 ($1.42) per liter.

Prices of RON95-III to date have risen by VND9,000 and biofuel E5-RON92 by VND8,150 per liter compared to early 2022.

In a discussion session at the NA on June 8, Minister of Finance Ho Duc Phoc said the Government is considering further cuts in taxes on fuel and petrol products in case prices continue the upward trend.

TAG: vietnam petrol vietnam fuels vietnam oils
Other news
18:43, 2024/05/24
Gov’t approves Hanoi’s US$118-million industrial park project
The project will prioritize attracting investment in high-tech and clean industries, in line with Hanoi's new development orientation and the development direction of the industrial sectors in the Red River Delta.
15:29, 2024/05/24
High-demand overseas jobs in Vietnam
Vietnam is expected to send about 125,000 workers on contract to foreign countries this year.
22:30, 2024/05/23
Vietnam's outbound travel buzz soars this summer
Vietnam's outbound tourism continues to show positive growth even in the face of current economic challenges.
20:25, 2024/05/23
New initiative to boost Vietnam's e-commerce exports
The program is designed to enhance the cross-border e-commerce capabilities of leading export-oriented industries in partnership with key industry associations.
18:49, 2024/05/22
Finance ministry proposes delaying excise duty payment deadline for domestic cars
If approved by the Government, this will be the fifth time since 2020 that the excise duty on domestically manufactured and assembled automobiles has been delayed.
06:17, 2024/05/21
Policy proposals to boost science, tech in Hanoi
The draft revised Capital Law is expected to strengthen the science and technology base of Hanoi.