MoF mulls increasing green tax

The Ministry of Finance (MoF) has proposed increasing environmental protection tax on gasoline from the current VNĐ 三,000 to ceiling level of VNĐ 四,000 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 VNĐ 三,000 to ceiling level of VNĐ 四,000 per litre, to help raise the State budget.

In a draft resolution sent to the National Assembly Standing Co妹妹ittee, the ministry said if the proposal was approved, in addition to the increase tax on oil to VNĐ 二,000 per litre, it’s estimated that the State budget will reach more than VNĐ 五 五 trillion (US$ 二. 四 billion) annually, up VNĐ 一 四. 三 七 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 VNĐ 一,000 and VNĐ 一0,000 per kilo, depending on the product.

If the National Assembly approves the proposal, the total revenue from environmental protection tax is estimated to be VNĐ 五 七. 六 trillion per year, up VNĐ 一 五. 一 九 trillion.

The ministry noted that environmental protection tax on petrol and oil has been collected since  二0 一 二. 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  二0 一 二 to  二0 一 七, the total amount of funds collected from environmental protection tax was about VNĐ 一 五0 trillion, or VNĐ 二 五 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  四 七th from low to high among  一 六 七 countries, less than  一 二0 countries, at VNĐ 一 九, 九 八0 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  七 七 opinions,  一 九 ideas came from ministries,  四 三 from localities, and five co妹妹ents from other associations, enterprises and organisations. In which  四 七 co妹妹ents completely agreed with the draft. — VNS