Vietnam fuel tax set to rise to highest level
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Prime Minister Nguyen Xuan Phuc will persist with a controversial plan to increase environmental tax on fuel to the highest level permitted, a source said.
A Finance Ministry official who did not want to be named said the plan will be discussed at the meeting of the Standing Committee of the National Assembly, Vietnam’s parliament, which is scheduled on July 11-13.
Should it pass, the new tax will take effect starting this October, three months later than the original schedule.
The reason for the delay, the official said, was that the Finance Ministry did not want to impose the tax in September, as a majority of students would be starting a new school year then.
The ensuing surge in transportation could affect the consumer price index, the source explained.
Under the proposal, the environmental tax on petrol and diesel will increase by 33 percent, or VND4,000 (17 cents) per liter and VND2,000 per liter respectively.
Questions & Answers
Q.When is the new fuel tax now expected to come into effect?
When is the new fuel tax now expected to come into effect?
If approved, the new environmental tax on fuel is scheduled to take effect starting this October. This represents a three-month delay compared to the original timeline for its implementation.
Q.Why was the implementation of the new fuel tax delayed by three months?
Why was the implementation of the new fuel tax delayed by three months?
The Finance Ministry delayed the tax's implementation because they did not want to impose it in September. A majority of students would be starting a new school year then, which could cause a surge in transportation and affect the consumer price index.
Q.What is the proposed percentage increase for the environmental tax on petrol and diesel?
What is the proposed percentage increase for the environmental tax on petrol and diesel?
Under the current proposal, the environmental tax on petrol is set to increase by 33 percent. The article does not specify a percentage increase for diesel, only a per-liter amount.
Q.Which government body is currently discussing the proposed fuel tax increase?
Which government body is currently discussing the proposed fuel tax increase?
The plan to increase the environmental tax on fuel is currently being discussed at a meeting of the Standing Committee of the National Assembly. This is Vietnam’s parliament, and the meeting is scheduled from July 11-13.
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