The Ministry of Finance proposes not to reduce excise tax on gasoline

According to the Ministry of Finance, gasoline is a fossil fuel, non-renewable, needs to be used sparingly, so according to international practice, it is always subject to special consumption tax.

Illustration. (Source: VNA)

The Ministry of Finance said that in the coming time, there will be no adjustment to reduce excise tax on gasoline.

According to the Ministry of Finance, the provisions of the Law on Special Consumption Tax only collect excise tax on gasoline, not excise tax on oil of all kinds. The excise tax rate for gasoline is 10%, gasoline E5 is 8% and gasoline E10 is 7%. The Law on Special Consumption Tax does not provide for tax reduction for goods and services subject to excise tax.

The Ministry of Finance said special consumption tax is an indirect tax, levied on a number of goods and services that the State discourages consumption because it is harmful to health such as tobacco, alcohol, beer..., photo impact on the environment and need to consume less fossil fuel or high-class goods and services that need to regulate income for cars, airplanes, yachts, golf...

Gasoline is a fossil fuel, not renewable, needs to be used sparingly, so according to international practice, it is always subject to special consumption tax.

The Ministry of Finance also cited international experience, most countries in the world collect excise tax on gasoline.

According to the Ministry of Finance, the excise tax rate on gasoline in Vietnam is currently at an average low level compared to other countries. According to statistics, the estimated revenue of special consumption tax on gasoline in the first 5 months of 2022 is about 6,503 billion VND.

In addition, in case the excise tax rate is adjusted for gasoline, the corresponding excise tax rate must be adjusted for E5 and E10 gasoline accordingly.

The Ministry of Finance affirmed that on its authority, the adjustment of excise tax falls under the competence of the National Assembly, so it must be submitted to the National Assembly for consideration and decision and often cannot be applied immediately, while gasoline prices there are times of fast volatility, short time, so there will be a certain delay. Therefore, the Ministry of Finance proposes not to make adjustments to reduce excise tax on gasoline in the immediate future.