Ministry refuses to lift special consumption tax on gasoline
In this article (5)
The Ministry of Finance refused a proposal to exempt special consumption tax on gasoline given the country’s tax rate is at a low level compared to many other countries.
The Vietnam Chamber of Commerce and Industry has recently proposed that the special consumption tax on gasoline be reduced to provide positive impacts amid global uncertainties.
The ministry said gasoline is a non-renewable fuel that needs to be used sparingly. Most countries impose the tax for example, in France (0.66 euro per liter), Germany (0.35 euro), South Korea (311 won per liter of absolute tax and 15% tax rate), Singapore (S$.41), China (1.52 yuan), Thailand (up to 6.5 baht), Cambodia (15%) and Laos (16%).
It said Vietnam’s special consumption tax on gasoline is lower than that of other countries, especially neighboring ones like Laos, Cambodia and China.
The current special consumption tax on gasoline is 10% with the same rate applied to value-added tax. The Ministry of Finance is proposing that the former tax is cut by half, and the latter by either 20% or 50%.
RON95 gasoline prices climbed to a peak in June before plunging to the current level of VND21,440 ($0.90) per liter, the lowest in 13 months.
Questions & Answers
Q.What reason did the Ministry of Finance give for refusing to remove the special consumption tax on gasoline?
What reason did the Ministry of Finance give for refusing to remove the special consumption tax on gasoline?
The Ministry of Finance stated that the country's tax rate is already low compared to many other nations. They also noted that gasoline is a non-renewable fuel which should be used sparingly.
Q.Which organisation had suggested reducing the special consumption tax on gasoline?
Which organisation had suggested reducing the special consumption tax on gasoline?
The Vietnam Chamber of Commerce and Industry recently proposed that the special consumption tax on gasoline be reduced. They believed this would provide positive impacts amidst current global uncertainties.
Q.What is the current special consumption tax rate on gasoline in Vietnam?
What is the current special consumption tax rate on gasoline in Vietnam?
The current special consumption tax on gasoline in Vietnam is 10%. This is the same rate that is currently applied to value-added tax.
Q.What changes is the Ministry of Finance proposing for the special consumption tax and value-added tax on gasoline?
What changes is the Ministry of Finance proposing for the special consumption tax and value-added tax on gasoline?
The Ministry of Finance is proposing to cut the special consumption tax by half. They are also suggesting that the value-added tax be reduced by either 20% or 50%.
Reader pulse
Ministry's tax stance on fuel is:
17,006 votes so far