VOV News English
An environmental tax on petrol and other fuel in Vietnam will rise by 300% after the National Assembly approved a tax hike to offset an expected shortfall in budget revenue.
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Retail petrol prices expected to fall further
The tax on gasoline and aviation fuel will rise from VND1,000 to VND3,000 a litre as of May 1.
The tax on diesel will rise from VND500 to VND1,500 a litre, while on fuel oil and lubricants will jump from VND300 to VND900. The tax on kerosene remains unchanged at VND300 a litre.
Environmental tax on fuel to be lifted by 300% on May 1.
Finance Minister Dinh Tien Dung said Vietnam has had to lower taxes on imported fuel in line with agreements with its partners in Asean, resulting in a significant shortfall in state budget revenue.
Petrol prices in Vietnam are between VND5,000 and VND6,000 a litre higher than in Laos and Cambodia, and also lower than China, which has given rise to smuggling.
“The tax increase on petrol and jet fuel is expected to boost state income by VND11trn a year,” Dung said.
“The move is also expected to encourage people to use biofuel, including E5 and E10 blends," he said. Ethanol is not covered by the tax increase.
"At the same time, petrol import taxes will also be decreased from 35% to 20%," Dung said.
The government wanted to use the extra money for its central budget, but the Assembly determined the additional revenue could only be spent on environmental protection measures.
