What are the solutions for environmental protection tax policy reform according to the tax reform strategy until 2030 in Vietnam?

What are the solutions for environmental protection tax policy reform according to the tax reform strategy until 2030 in Vietnam?

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

III. SOLUTIONS

1. Regarding tax policy reform

...

h) For environmental protection tax: Study and expand items or objects of environmental protection tax on goods causing environmental pollution; study adjustment to the environmental protection tax framework and rates to ensure that the environmental protection tax policy is an important economic tool that contributes to limiting the import, production and use of goods polluting the environment;

i) For fees, charges and other collections remitted into the state budget: Review and complete the legal system of fees and charges oriented towards effectively exploiting fees and charges from property, natural resources, and environmental protection; actualize the roadmap to increase the levels of collected fees and charges in order to gradually cover the full cost at each level; accelerate the transition from fees to public service prices, encouraging private-sector involvement in provision of public services; push for administrative procedure reform and provision of online public services to further improve the business environment, free up resources of the entire society and contribute to improving national competitiveness; at the same time, ensure compliance with the guidelines for re-organization or restructuring of the apparatus of state regulatory authorities and non-business units.

Conduct researches on inventing revenues or taxes collected from new business activities and types to keep up with the actual condition of development, ensuring that Vietnam's rights to collect and impose taxes are put in the socio-economic contexts from time to time and conform to international practices. Review and finalize policies on other state budget revenues, ensuring they are aligned with real circumstances and in sync with specialized legislation.

Thus, the solutions for environmental protection tax policy reform according to the tax reform strategy until 2030 in Vietnam are as follows:

- Study and expand items or objects of environmental protection tax on goods causing environmental pollution;

- Study adjustment to the environmental protection tax framework and rates to ensure that the environmental protection tax policy is an important economic tool that contributes to limiting the import, production and use of goods polluting the environment

What are the solutions for environmental protection tax policy reform according to the tax reform strategy until 2030 in Vietnam? (Image from Internet)

What are the regulations on environmental protection tax declaration, calculation, and payment in Vietnam?

According to Article 10 of the Environmental Protection Tax Law 2010, tax declaration, payment, and calculation are stipulated as follows:

- The tax declaration, tax calculation, tax payment for environmental protection on goods produced and sold, exchanged, internally consumed, donated shall be made by the month and the provisions of the law on tax administration.

- The tax declaration, tax calculation, tax payment for environmental protection on imported goods shall be made at the same to time of import tax declaration and tax payment.

- Environmental protection tax is only paid once for goods produced or imported.

Additionally, Article 10 of the Environmental Protection Tax Law 2010  on the tax payment is stipulated in Article 5 of Decree 67/2011/ND-CP as follows:

Tax declaration, calculation, and payment shall follow the provisions of Article 10 of the Environmental Protection Tax Law 2010 and tax administration law.

- For the goods which are produced for selling, exchanging, internal consumption, gifting, the tax declaration, tax calculation, and tax payment are conducted monthly. For imported goods, entrusted imports, the tax declaration, tax calculation, and tax payment are conducted by each time of arising.

- Declaration, calculation and payment of environmental protection taxes for gasoline, oil, grease: Hubs companies of gasoline and oil shall declare and pay environmental protection taxes and the state budget for the delivered, sold gasoline and oil (including delivery for internal consumption, delivery for exchange with other commodities, the delivery for returning entrusted imports, for sales to other organizations, individuals, except for selling for other hubs company of trading gasoline and oil) at the local where the value added tax is declared and paid.

Ministry of Finance stimulates the hubs companies to declare, pay environmental protection tax for gasoline and oil.

- Declaration, calculation and payment for environmental protection tax for coal shall follow the principles: coal for domestic consumption must be declared and paid environmental protection tax; coal for export is not subject to environmental protection tax. Ministry of Finance shall preside over and coordinate with the Ministry of Industry and Trade in guiding specifically the provisions in this Clause.

- Environmental protection tax shall be paid only once for goods produced or imported. In case the exported goods has been paid for environmental protection tax, but re-imported into Vietnam, such re-imported goods shall not be paid environmental protection tax upon importation.

What are the 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.