Monday, August 20 2018

VietNamNews

MoF mulls increasing green tax

Update: May, 17/2018 - 16:29
The Ministry of Finance (MoF) has proposed increasing environmental protection tax on gasoline from the current VNĐ3,000 to ceiling level of VNĐ4,000 per litre, to help raise the State budget.— Photo dantri.com.vn

HÀ NỘI — The Ministry of Finance (MoF) has proposed increasing environmental protection tax on gasoline from the current VNĐ3,000 to ceiling level of VNĐ4,000 per litre, to help raise the State budget.

In a draft resolution sent to the National Assembly Standing Committee, the ministry said if the proposal was approved, in addition to the increase tax on oil to VNĐ2,000 per litre, it’s estimated that the State budget will reach more than VNĐ55 trillion (US$2.4 billion) annually, up VNĐ14.37 trillion, from oil and gasoline.

The ministry also asked the National Assembly for permission to raise environmental protection tax on other products such as coal, Hydrochloroflurocarbons (HCFC) and plastic bags by between VNĐ1,000 and VNĐ10,000 per kilo, depending on the product.

If the National Assembly approves the proposal, the total revenue from environmental protection tax is estimated to be VNĐ57.6 trillion per year, up VNĐ15.19 trillion.

The ministry noted that environmental protection tax on petrol and oil has been collected since 2012. The tax has increased society’s awareness towards the environment, and the need to meet the requirements of sustainable development in Việt Nam.

In terms of contribution to the State budget, the ministry said from the year 2012 to 2017, the total amount of funds collected from environmental protection tax was about VNĐ150 trillion, or VNĐ25 trillion per year on average.

In the current socio-economic context of the country, the ministry said it’s necessary to study the adjustment of environmental protection tax to the appropriate level. Petroleum retail prices in Việt Nam are lower than those of other countries in the region and Asia. Việt Nam’s petroleum retail price ranked 47th from low to high among 167 countries, less than 120 countries, at VNĐ19,980 per litre.

Research shows that goods subject to environmental protection tax such as gasoline, oil, grease, coal and plastic bags cause adverse impacts on the environment.

According to the calculations of scientists, in order to regulate impacts on the environment, the tax on the above items must be much higher, said the ministry.

In order to develop this draft resolution, the ministry has consulted widely with the Government and other institutions. Of a total 77 opinions, 19 ideas came from ministries, 43 from localities, and five comments from other associations, enterprises and organisations. In which 47 comments completely agreed with the draft. — VNS

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