Vietnam finance ministry seeks deeper cut in environment tax on fuel

[HANOI] Vietnam's finance ministry on Thursday (Mar 10) said it was seeking government approval to lower environment tax on fuel by half instead of the 25 per cent cut it proposed last week, amid soaring energy prices.

Accordingly, environment tax on petrol, and on diesel fuel and lubricants would be cut by half to 2,000 dong (S$0.1) per litre and 1,000 dong per litre respectively if the government passes the proposal.

Tax on kerosene would be reduced to 700 dong per litre from the current 1,000 dong.

The deeper proposed cut was based on complications with global energy prices and was suggested by the industry ministry, the finance ministry said in a statement.

Tax collection would be reduced by 29 trillion dong (S$1.7 billion) if the new tax rates are in place from April to year end, the statement added.

Vietnam aimed to keep inflation below 4 per cent for 2022. The country raised its RON92 petrol price by 2.1 per cent to a record high 26,071 dong (S$1.6) per litre last Tuesday. REUTERS