Reduction of 50% of environmental protection tax on gasoline, oil, and lubricants until the end of 2024 in Vietnam

Reduction of 50% of environmental protection tax on gasoline, oil, and lubricants until the end of 2024 in Vietnam

Recently, the Standing Committee of the National Assembly issued Resolution 42/2023/UBTVQH15 on the environmental protection tax rates for gasoline, oil, and lubricants from January 1, 2024 to December 31, 2024.

The environmental protection tax rates for gasoline, oil, and lubricants will continue to be reduced by 50% until the end of 2024, specifically:

Note: The environmental protection tax rates for gasoline, oil, and lubricants from January 1, 2025 will continue to be implemented in accordance with the provisions of Section 1, Clause 1, Article 1 of Resolution 579/2018/UBTVQH14 dated September 26, 2018 of the Standing Committee of the National Assembly on the Environmental Protection Tax Schedule.

Resolution 42/2023/UBTVQH15 will take effect and will terminate the effectiveness of Resolution 20/2022/UBTVQH15.

Reduction of 50% of environmental protection tax on gasoline, oil, and lubricants until the end of 2024 in Vietnam - Source: Internet

What are cases in which gasoline, oil, and lubricants are not subject to environmental protection tax in Vietnam?

Pursuant to Clause 1 Article 3 of the Law on Environmental Protection Tax in 2010 stipulating taxable subject as follows:

Taxable subject

1. Gasoline, oil, grease, including:

a) Gasoline, except ethanol;

b) Aviation fuel;

c) Diesel;

d) Kerosene;

e) Fuel oil;

f) Lubricants;

g) Lubricant Grease.

Pursuant to Article 4 of the Law on Environmental Protection Tax in 2010 stipulating un-taxable object as follows:

Un-taxable object

1. Goods is not specified in Article 3 of this Law shall not be subject to environmental tax.

2. Goods provided for in Article 3 of this Law shall not be subject to environmental tax in the following cases:

a) 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;

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

c) 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.

As regulations above, gasoline, oil, and lubricants are not subject to environmental protection tax in Vietnam in following cases:

[1] 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;

[2] 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;

[3] Goods temporarily imported for re-export within the time limit prescribed by law;

[4] 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.

In which cases are environmental protection taxpayers entitled to a refund of taxes paid in Vietnam?

Pursuant to Article 11 of the Law on Environmental Protection Tax in 2010 stipulating tax refund as follows:

Environmental protection taxpayer is paid tax refund 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.

Best regards!