Finance ministry proposes tax cuts on gasoline
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The Ministry of Finance has apprised the government of its plan to reduce special consumption tax and value-added tax on gasoline to bring its prices down.
The plan was announced Thursday by a ministry official without disclosing further details.
Currently special consumption tax is at 8-10 percent and value-added tax is at 10 percent.
Gasoline prices rose to an all-time high of VND32,870 ($1.41) per liter last Tuesday.
Prices have surged by 65-70 percent since the end of 2021, burdening both consumers and businesses.
Earlier this month, the ministry had considered halving the environment tax on fuel, but critics said a cut of VND500-1,000 is too little to have an effect and called for reduction in other taxes.
Taxes and fees account for 35 percent of gasoline prices.
Questions & Answers
Q.Which specific taxes does the Ministry of Finance propose to reduce?
Which specific taxes does the Ministry of Finance propose to reduce?
The ministry has proposed reducing the special consumption tax and the value-added tax on gasoline. These cuts are intended to help lower current gasoline prices.
Q.What percentage of the current gasoline price is made up of taxes and fees?
What percentage of the current gasoline price is made up of taxes and fees?
Taxes and fees collectively account for 35 percent of the current gasoline price. This figure indicates a significant portion of the total cost.
Q.Why did critics suggest that earlier proposals to cut the environment tax were insufficient?
Why did critics suggest that earlier proposals to cut the environment tax were insufficient?
Critics stated that a cut of VND500-1,000 in the environment tax would be too small to have a significant impact. They advocated for reductions in other taxes instead.
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