Are imposed plastic bags made from HDPE in Vietnam subject to environmental protection tax?

Are imposed plastic bags made from HDPE in Vietnam subject to environmental protection tax?

Under Article 3 of the Environmental Protection Tax Law 2010 which stipulates the taxable objects:

Taxable subject

1. Gasoline, oil, grease, including:

a) Gasoline, except ethanol;

b) aircraft fuel;

c) diesel oil;

d) Petroleum;

e) Fuel oil;

f) lubricants;

g) Grease.

2. Coal, including:

a) Lignite;

b) Anthracite Coal (anthracite);

c) Fat coal;

d) Other coal.

3. Hydrogen-chlorofluorocarbon liquid (HCFC).

4. Taxable-plastic bag.

5. Herbicide which is restricted from use.

6. Pesticide which is restricted from use.

7. Forest product preservative which is restricted from use.

8. Warehouse disinfectant which is restricted from use.

9. When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

The Government shall specify this Article.

According to Article 1 of Circular 159/2012/TT-BTC:

- Taxable nylon bags (plastic bags) are thin plastic bags and packages, that open at the top and may store products therein, made of HPDE (high density polyethylene resin), LDPE (low density polyethylene) or LLDPE (linear low density polyethylene resin), except for packages of pre-packed goods that satisfy the eco-friendly standards as from being issue with the Certificate of Eco-friendly nylon bag as prescribed by the Ministry of Natural Resources and Environment.

Thus, according to the regulations, plastic bags made from high-density polyethylene resin are subject to environmental protection tax.

Are imposed plastic bags made from HDPE in Vietnam subject to environmental protection tax? (Image from the Internet)

Which goods are not subject to environmental protection tax in Vietnam?

According to Article 4 of the Environmental Protection Tax Law 2010, goods not subject to environmental protection tax in Vietnam include:

- Goods not specified in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax.

- Goods provided for in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax in the following cases:

+ Goods transported in transit or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

+ Goods temporarily imported for re-export within the time limit prescribed by law;

+ Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.

What are the 05 cases of refund of environmental protection tax in Vietnam?

Under Article 11 of the Environmental Protection Tax Law 2010, environmental protection tax is refunded in the following cases:

- Imported goods are still stored in warehouse, storage at the border gate and are subject to be supervised by the customs authority for re-export to foreign countries;

- Imported goods to transport, sell abroad through agents in Vietnam; gasoline, petrol sold for vehicles of foreign firms on the route through Vietnam's ports or means of Vietnam's transportation on international transport road under the provisions of law;

- Goods temporarily imported for re-export by business mode of temporary import for re-export.

- Goods imported by the importer re-exporting to foreign countries;

- Goods temporarily imported for participation in fairs, exhibitions and introduction of products in accordance with the law when re-exported to foreign countries.

What is the environmental protection taxable time for plastic bags brought into internal consumption in Vietnam?

Under Article 9 of the Environmental Protection Tax Law 2010, the environmental protection taxable time is as follows:

- For goods manufactured, sold, exchanged, donated, taxable time is the time transferring the ownership or right to use goods.

- For manufactured goods brought into internal consumption, taxable time is the time when taxable goods are brought into use.

- For imported goods, taxable time is the time of registration of customs declarations.

- For gasoline, petroleum produced or imported for sale, taxable time is the time when the business hub of petrol and oil sold.

Thus, the environmental protection taxable time for plastic bags brought into internal consumption in Vietnam is the time of bringing the plastic bags into use.