Ministry proposes raising environment tax The Ministry of Finance has proposed raising environmental protection taxes on oil and petroleum products from July 1 which will boost the annual tax revenue to VND57.31trn (USD2.5bn). illustrative image The ministry is gathering opinions about the hike before submitting to the National Assembly for approval. They proposed to raise the environmental protection taxes from VND3,000 to the maximum of VND4,000 per litre of petroleum products. Environmental protection taxes will increase from VND1,500 to VND2,000 of diesel, and by VND1,000 on all other oil products. It is estimated that the annual revenues from environmental protection taxes will increase by VND15trn (USD660m), to VND57.31trn after the hike. According to the ministry, oil and petroleum products contain toxic substances that have a negative effect on the environment even when they are not in use. Raising the environmental protection taxes is hoped to encourage people to use energy more effectively and switch to environmentally-friendly products in the future. Moreover, the state budget is badly affected after import taxes are reduced or exempted, especially from Chinese and South Korean markets, in accordance with the trade agreements. The import tax revenue from ASEAN countries decreased from VND13.5trn (USD59m) in 2015 to VND5.8trn in 2016. Last year, this revenue continued to drop by 97 percent. The fuel prices in Vietnam are said to be much lower than neighbouring countries. Statistics from Global Petrol Prices show that gasoline prices in Vietnam as of November 27, 2017 was VND18,580 (82 US cents), lower… [Read full story]
Ministry proposes halting environment tax on plastic bags By Van Nam - The Saigon Times Daily HCMC – The Ministry of Industry and Trade has proposed the Ministry of Finance seek approval from the Government and National Assembly Standing Committee to halt the environmental protection tax on plastic bags to help struggling enterprises. Since the law on environmental protection tax took effect early this year, the ministry has received big outcries from industry associations. The ministry said the new legislation spelled trouble for exporters in the first quarter. It is hard to identify what plastic bags are subject to the…... [read more]
Ministry insists on environment tax hike on fuelsMinh Tam A vehicle is refilled at a gas station in HCMC. Despite a public uproar, the Ministry of Finance has shown no signs of backing off its plan to hike the environmental protection tax on fuels - PHOTO: TL HCMC – Despite a public uproar, the Ministry of Finance has shown no signs of backing off its plan to hike the environmental protection tax on fuels by VND3,000-8,000 a liter, double or triple the current level. The planned tax hike is considered based on multiple factors, the ministry said in a report…... [read more]
>> Finance Ministry seeks to raise personal income tax threshold >> NA official: No resolution on personal tax exemption The Ministry of Finance is seeking the Government's approval for personal income tax (PIT) exemptions for certain groups. According to an official from the ministry's General Department of Taxation, the exemption is proposed for single people who earn VND5 million (USD239,234) per month and people with 1-2 dependents whose income is VND6.5 million per month (USD311). The ministry has also proposed PIT exemption for dividend incomes and reduction for the current PIT of 0.1% for securities investment, he added, explaining that…... [read more]
Ministry proposes new consumption tax calculation for imported autos Quoc Hung By Quoc Hung - The Saigon Times Daily HCMC – The Ministry of Finance has proposed a new method of calculating the special consumption tax (SCT) for completely built-up (CBU) auto imports and imported cars would be sold at higher prices if the proposal is approved. The ministry’s proposed calculation of SCT will focus on under 24-seat autos in a fresh move to narrow the gap between the SCT imposed on imported and domestically assembled autos. Accordingly, this tax on imported autos of under 24 seats would go up…... [read more]
Accordingly, the tax rate of petroleum, except ethanol, will increase to 3.000 VND/liter. Environment tax rates will be VND 3,000 per liter for gasoline and jet fuel, VND 1,500 per liter for diesel fuel, and VND 900 per liter for kerosene. In the morning of March 10th, at the 36th session of the National Assembly Standing Committee approved an increase in environment tax on a number of items, including petroleum. National Assembly Chairman Nguyen Sinh Hung affirmed that raising environment tax is to protect the environment. Thus, the additional revenue must not be used for making up for the reduction…... [read more]
