What are expand items or objects of environmental protection tax in Vietnam?

What are expand items or objects of environmental protection tax in Vietnam?

According to point h, clause 1, Section 3, Article 1 of Decision 508/QD-TTg in 2022 stipulates:

III. MEASURES TO IMPLEMENT STRATEGY

1. Regarding Tax Policy Reform

...

g) For taxes related to assets (including agricultural land use tax and non-agricultural land use tax): continue to exempt agricultural land use tax until the end of 2025 to contribute to fulfilling the guidelines and policies of the Communist Party and the State on the development of agriculture and rural areas. Summarize and comprehensively evaluate the implementation of non-agricultural land use tax policies. On that basis, research improvements towards increasing regulation levels on land and supplementing tax collection on houses to encourage efficient use of houses and land, limit speculation, ensure reasonable and stable revenue sources for the state budget, in line with Vietnam's socio-economic conditions and international practices. At the same time, develop a tax policy that is simple, easy to understand, clearly identifies taxable assets, the amount of tax payable, and is aligned with land law and other relevant laws;

h) For environmental protection tax: research to expand the subjects liable to environmental protection tax for goods causing environmental pollution; research to adjust the framework and tax rates of environmental protection tax to ensure that environmental protection tax policy is an important economic tool contributing to the limitation of importing, producing, and using polluting goods;

i) For fees, charges, and other revenues belonging to the state budget: review, improve the legal system of fees and charges to effectively exploit revenue sources from assets, resources, and environmental protection; implement a roadmap to increase fees to gradually cover the full costs within the fee collection rate; accelerate the transition from fees to public service pricing, encourage and promote private investment in providing public services; enhance administrative procedure reform, provide online public services to continue improving the business environment, free up social resources, and enhance national competitiveness; at the same time ensure alignment with the reorganization of state agencies and public service providers.

Research and develop revenue collection or tax policies for new activities and business forms suitable to practical development, ensuring Vietnam's tax rights and authority, appropriate to socio-economic context in each period and in line with international practices. Review and complete policies on other revenues for the state budget, ensuring they are practical and aligned with sectoral laws.

Accordingly, the strategic solution for environmental protection tax policy reform under the tax system reform strategy to 2030 is as follows:

- Research to expand the subjects liable to environmental protection tax for goods causing environmental pollution;

- Research to adjust the framework and tax rates of environmental protection tax to ensure that environmental protection tax policy is an important economic tool, contributing to the limitation of importing, producing, and using polluting goods.

Thus, by implementing the environmental protection tax policy reform strategy under the tax system reform strategy to 2030, it is necessary to research expanding the subjects liable to environmental protection tax for goods causing environmental pollution.

What are expand items or objects of environmental protection tax in Vietnam? (Image from the Internet)

What is the framework for environmental protection tax in Vietnam?

According to Article 8 of the Law on Environmental Protection Tax 2010, the fixed tax rates are stipulated as follows:

* Based on the tax framework, the Standing Committee of the National Assembly prescribes specific tax rates for each type of taxable goods, ensuring the following principles:

- The tax rates for taxable goods are appropriate to the State's socio-economic development policies in each period;

- The tax rates for taxable goods are determined based on the degree of adverse environmental impacts of the goods.

When is environmental protection tax refundable in Vietnam?

Pursuant to Article 11 of the Law on Environmental Protection Tax 2010, environmental protection tax is refundable in the following cases:

Taxpayers are entitled to a refund of the paid environmental protection tax in the following cases:

- Imported goods that are still in storage, under customs supervision, and are re-exported to a foreign country;

- Imported goods delivered or sold to foreign countries through agents in Vietnam; gasoline and oil sold to means of transport of foreign companies on routes through Vietnamese ports or to Vietnamese means of transport on international transport routes as per law.

- Temporarily imported goods for re-export under business mode shall receive a refund.

- Goods imported by importers and re-exported abroad;

- Temporarily imported goods for trade fairs, exhibitions, product introductions as per regulations when re-exported abroad.