Which authority has the power to increase or decrease environmental protection tax on petrol and oil in Vietnam?

What is the environmental protection taxable time in Vietnam?

The environmental protection taxable time is regulated in Article 6 of Circular 152/2011/TT-BTC as follows:

Tax calculation time

1. For produced goods sold, exchanged, donated, used for sales promotion or advertising, the tax calculation time is the time of transfer of the goods ownership or use right.

2. For produced goods used for internal consumption, the tax calculation time is the time goods are put into use.

3. For imported goods, the tax calculation time is the time of registration of customs declarations, except petrol and oil imported for sale as specified in Clause 4 of this Article.

4. For petrol and oil produced or imported for sale, the tax calculation time is the time principal petrol and oil traders sell petrol and oil.

The environmental protection taxable time is specifically detailed as follows:

Which authority has the power to increase or decrease environmental protection tax on petrol and oil in Vietnam? (Image from the Internet)

Which authority has the power to increase or decrease environmental protection tax on petrol and oil in Vietnam?

Under Clause 2 Article 8 of the Environmental Protection Tax Law 2010, the regulations are:

Tariff table

...

2. On the basis of the Tariff table prescribed in Clause 1 of this Article, the National Assembly Standing Committee provide for specific tax amount to each type of dutiable goods ensuring the following principles:

a) The tax amount on taxable goods in line with socio-economic development policy – social in each period;

b) The tax amount on taxable goods shall be determined under the extent of causing negative environmental impacts of the goods.

The absolute environmental protection tax amount on the Tariff table includes the highest and lowest tax amounts for a unit of goods.

Based on the Tariff table prescribed by the National Assembly, the National Assembly Standing Committee provides for absolute tax amounts for each type of dutiable goods.

What petrol and oil products are subject to environmental protection tax in Vietnam

Under Article 3 of the Environmental Protection Tax Law 2010, the regulations are as follows:

Taxable subject

1. Petrol, oil, grease, including:

a) Petrol, 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.

Thus, petrol and oil products subject to environmental protection tax include:

- Petrol, except ethanol;

- aircraft fuel;

- diesel oil;

- Petroleum;

- Fuel oil;

- lubricants;

What is the environmental protection tax on petrol and oil in Vietnam?

According to Resolution 42/2023/UBTVQH15, the Standing Committee of the National Assembly decided to reduce the environmental protection tax on petrol and oil by 50%, effective until the end of 2024.

To be specific:

- Petrol - except ethanol: 2,000 VND/liter.

- Aircraft fuel, diesel oil, fuel oil, lubricants: 1,000 VND/liter.

- Grease: 1,000 VND/kg.

- Kerosene: 600 VND/liter.

At that time, the reduction for various types of petrol, oil, grease, when Resolution 42/2023/UBTVQH15 takes effect, are as follows:

- For Petrol (except ethanol): the environmental protection tax reduction is 2,000 VND/liter, thereby reducing the retail price of Petrol (including VAT reduction) by 2,200 VND/liter.

- For Aircraft fuel: the environmental protection tax reduction is 2,000 VND/liter, thereby reducing the retail price of Aircraft fuel (including VAT reduction) by 2,200 VND/liter.

- For diesel oil, fuel oil, and lubricants: the environmental protection tax reduction is 1,000 VND/liter, thereby reducing the retail price of diesel oil, fuel oil, and lubricants (including VAT reduction) by 1,100 VND/liter.

- For Grease: the environmental protection tax reduction is 1,000 VND/kg, thereby reducing the retail price of Grease (including VAT reduction) by 1,100 VND/kg.

- For kerosene: the environmental protection tax reduction is 400 VND/liter, thereby reducing the retail price of kerosene (including VAT reduction) by 440 VND/liter.

The environmental protection tax amounts for petrol, oil, and grease mentioned above will apply from January 1, 2024, to December 31, 2024.

The environmental protection tax amounts for petrol, oil, and grease from January 1, 2025, will be implemented according to Section 1 Clause 1 Article 1 of Resolution 579/2018/UBTVQH14, specifically:

- Petrol, except ethanol: 4,000 VND/liter;

- Aircraft fuel: 3,000 VND/liter;

- Diesel oil, fuel oil, lubricants: 2,000 VND/liter;

- Kerosene: 1,000 VND/liter;

- Grease: 2,000 VND/kg.

Note: Resolution 42/2023/UBTVQH15 is effective from January 1, 2024.

The environmental protection tax amounts for petrol, oil, and grease stipulated in Section 1 Clause 1 Article 1 of Resolution 579/2018/UBTVQH14 shall not be applied from January 1, 2024, to December 31, 2024.