VINPA supports petrol tax hikes proposed by MoF

The Viet Nam Petroleum Association (VINPA) has sent a document to the Ministry of Finance (MoF) in support of the ministry’s proposal to increase the environmental protection tax on oil and gas consumption. — Photo infonet.vn

However, VINPA said the proposed increase from the current VND3,000 to VND8,000 per litre of petroleum was too high and instead suggested a rise to VND5,000 per litre. The association also proposed an environmental tax of VND3,000 on diesel (compared to the current VND1,500), an increase in the tax on aviation fuel from the current VND3,000 to VND5,000 per litre, and on mazut from VND900 to VND3,000 per kilo.

The association said the environmental protection tax on oil and gas consumption would ensure responsibility of organisations and individuals in protecting the environment while following the global integration process.

VINPA’s chairman Phan The Rue affirmed that the association’s proposed tax increase was suitable with the country’s economy, ensuring State budget collection and national energy security as well as the benefit to consumers.

MoF’s deputy minister Tran Xuan Ha said at the National Assembly (NA) meeting earlier this month that the increased level of the environmental protection tax would be decided by the NA’s Standing Committee.

Ha said the collection from the tax increase would restructure the State budget in the context of gradually reducing petroleum imports to zero.

In addition, petroleum prices in Viet Nam have been at the lowest level in comparison with countries with common borders. The tax hike therefore would be one possible solution to better manage petroleum trading and prevent smuggling. — VNS