VN’s National Assembly Approves Higher Eco-Tax On Oil And Gas

Vietnam's National Assembly March 12 Standing Committee on Tuesday approved an increase in environmental taxes on oil and gas products that would take it to three times the current levels, according to Viet Nam News.

 

The amended Resolution No 1269 on environmental taxation will, however, impose no extra duty on kerosene, as this is an essential commodity for the majority of poor people, and those living in underprivileged and mountainous areas.

Accordingly, the environmental tax levied on petrol (except for ethanol) and aviation fuel will increase from VND1,000 to VND3,000 (0.47 to 1.4 US cents) per litre; on diesel from VND500 to VND1,500 per litre; and on lubricating oil and grease from VND300 to VND900 per litre.

The tax on kerosene will stay the same at VND300 per litre.

The increased revenues will be allocated to the State and local budgets this year.

On the second day of the ongoing NA Standing Committee session, members discussed a Government report that analysed the need for amendments to the resolution as well as the likely impacts of increased environmental taxes.

Committee members agreed with the report, saying the latest reductions in oil and gas prices have increased fuel use, thus damaging the environment further.

They also agreed with the argument that increasing the tax will help mitigate environmental pollution.