Vietnam finance ministry seeks deeper cut in environment tax on fuel

Vietnam’s finance ministry on Thursday said it was seeking government approval to lower environment tax on fuel by half instead of the 25% cut it proposed last week, amid soaring energy prices.

Source: Tuoitrenews

Vietnam’s finance ministry on Thursday said it was seeking government approval to lower environment tax on fuel by half instead of the 25% cut it proposed last week, amid soaring energy prices.

Tax on kerosene would be reduced to 700 dong per liter from the current 1,000 dong.

The deeper proposed cut was based on complications with global energy prices and was suggested by the industry ministry, the finance ministry said in a statement.

Tax collection would be reduced by 29 trillion dong ($1.27 billion) if the new tax rates are in place from April to year end, the statement added.

Vietnam aimed to keep inflation below 4% for 2022. The country raised its RON92 gasoline price by 2.1% to a record high 26,071 dong ($1.14) per liter last Tuesday, March 08.