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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.
