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Environmental fuel tax rise may be delayed
  • | dtinews.vn, TP | October 01, 2018 11:00 AM

The Ministry of Industry and Trade proposed rescheduling the environmental protection tax rise on fuels to a more suitable time as concerns over inflation increase.

The proposal was made by Deputy Minister of Industry and Trade Do Thang Hai at a recent meeting of the Steering Committee of Price Management.  

   

The Ministry of Industry and Trade proposed rescheduling the environmental protection tax rise on fuels

Under the National Assembly Standing Committee’s approval, the environmental protection tax for oil and petroleum products will be implemented from January 1, 2019.

Environmental protection taxes for petrol will be raised by VND1,000 to the ceiling level of VND4,000 per litre from the current level of VND3,000 (13 US cents). The taxes for diesel oil will be raised by VND500 to VND2,000 per litre; meanwhile, the increase for other products will be from VND5,00-1,100 per litre.

However, according to Hai, the effective date of the hike will coincide with the 12th lunar month near the Tet holiday, and will increase fuel prices, thus impacting the consumer price index. He recommended the tax application at a more suitable time.

At the meeting, a representative from the Ministry of Finance’s the Taxation Policy Division said that the ministry will refund 2% of special consumption tax of petrol E5 RON92 for importers, aiming to encourage the production, distribution and consumption of this kind of fuel. The refunded tax is expected at around VND700 billion (USD31.81 million).

Deputy Prime Minister Vuong Dinh Hue said that E5 RON92 currently accounts for just 41% of the domestic consumption, lower than RON 95 petrol, so the Ministry of Industry and Trade needs to promote of E5 RON92 quality as well as its reasonable prices to boost consumption and curb inflation.

Deputy Minister Hai said that the use of Petroleum Price Stabilisation Fund so far this year has helped control the consumer price index. By late August this year, around VND5.5 trillion from the fund had been used to stabilise prices.

But in the context of sharply increasing fuel prices in the world market, Hai noted that it was necessary to continue considering the use of the petroleum price stabilisation fund from now to the year-end, and the Tet Holiday next year.


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