Vietnam legislature approves further 50% cut in environment tax on fuel

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HANOI : Vietnam’s national assembly approved on Wednesday a plan to cut environment tax on fuel by half for the second time in three months as soaring energy prices put pressure on inflation, state television reported.

The extended cut, which will apply from July 11 to the end of the year, aims to help Vietnam weather the negative impacts of soaring costs of transportation on the economy, Vietnam Television (VTV) reported.

Vietnam is aiming to keep inflation below 4 per cent for 2022. Its consumer prices in June rose 3.37 per cent from a year earlier, led by higher food and energy costs, while transportation costs climbed 21.4 per cent from a year earlier.

Environment tax on gasoline, and on diesel fuel would be halved to 1,000 dong ($0.0428) per litre and 500 dong per litre respectively.

Tax on jet fuel will be reduced by 500 dong to the floor price of 1,000 per litre while tax on kerosene would be kept at 300 dong per litre.

The finance ministry estimated tax collection would be reduced by 32.5 trillion dong ($1.39 billion) under the new rates.

The Southeast Asian country last week said it plans to cut its Most Favoured Nation tariff on gasoline to 12 per cent from 20 per cent, and also slash special consumption tax and value-added tax on fuels.

($1 = 23,368 dong)

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