Hanoi-Vietnam: Proposing environmental protection tax rates for petrol and oil products in 2023 on the basis of four scenarios of global crude oil prices

16:29, 09/07/2024

(Chinhphu.vn) - In the draft Resolution of the Standing Committee of the National Assembly of Vietnam on environmental protection tax (EPT) rates for petrol and oil products and lubricants in 2023, the Ministry of Finance proposes regulations on EPT rates for petrol and oil products and lubricants in 2023 on the basis of four scenarios of global crude oil prices.

Proposed Environmental Protection Tax Rates for Gasoline and Oil in 2023 Based on Four Scenarios of Global Crude Oil Prices

Hanoi-Vietnam: Proposing EPT rates for petrol and oil products in 2023 on the basis of four scenarios of global crude oil prices

According to the Ministry of Finance, to ensure flexibility and promptness while not significantly affecting the production and business plans of petrol and oil companies and the management of petrol and oil prices (without impacting price fluctuations) in 2023, and at the same time to create a legal basis for applying Environmental Protection Tax (EPT) rates for petrol and oil products and lubricants when global crude oil prices fluctuate without having to submit multiple resolutions to the Standing Committee of the National Assembly (UBTVQH) in 2023, it is proposed to submit to the UBTVQH for issuing a resolution specifying the EPT rates for petrol and oil products and lubricants from January 1, 2023, to December 31, 2023, as follows:

Regulations on the EPT rates for petrol and oil products and lubricants in 2023 according to various scenarios of global crude oil prices. Specifically:

No	Goods	Unit	Tax Bracket under the Law on EPT (VND/unit)	Proposed Tax Rate (VND/unit)
I	When global crude oil price is 70 USD/barrel or below (specifying the EPT rates for petrol and oil products lubricants according to Resolution No. 579/2018/UBTVQH14 - the ceiling rate within the tax range, except for kerosene)
1	Gasoline, excluding ethanol	liter	1,000-4,000	4,000
2	Jet fuel	liter	1,000-3,000	3,000
3	Diesel oil	liter	500-2,000	2,000
4	Kerosene	liter	300-2,000	1,000
5	Fuel oil	liter	300-2,000	2,000
6	Lubricating oil	liter	300-2,000	2,000
7	Lubricating grease	kg	300-2,000	2,000
II	When global crude oil prices exceed 70 USD/barrel but below 80 USD/barrel (specifying EPT rates for petrol and oil products lubricants at 75% of the rates specified in Resolution No. 579/2018/UBTVQH14, equivalent to a 25% reduction)
1	Gasoline, excluding ethanol	liter	1,000-4,000	3,000
2	Jet fuel	liter	1,000-3,000	2,250
3	Diesel oil	liter	500-2,000	1,500
4	Kerosene	liter	300-2,000	750
5	Fuel oil	liter	300-2,000	1,500
6	Lubricating oil	liter	300-2,000	1,500
7	Lubricating grease	kg	300-2,000	1,500
III	When global crude oil prices from 80 USD/barrel to below 100 USD/barrel (specifying EPT rates for petrol and oil products lubricants at 50% of the rates specified in Resolution No. 579/2018/UBTVQH14, equivalent to a 50% reduction, similar to the adjustment by UBTVQH in Resolution No. 18/2022/UBTVQH15 dated March 23, 2022)
1	Gasoline, excluding ethanol	liter	1,000-4,000	2,000
2	Jet fuel	liter	1,000-3,000	1,500
3	Diesel oil	liter	500-2,000	1,000
4	Kerosene	liter	300-2,000	500
5	Fuel oil	liter	300-2,000	1,000
6	Lubricating oil	liter	300-2,000	1,000
7	Lubricating grease	kg	300-2,000	1,000
IV	When global crude oil prices are from 100 USD/barrel or above (specifying EPT rates for petrol and oil products lubricants at the floor rate within the tax range, similar to the adjustment by UBTVQH in Resolution No. 20/2022/UBTVQH15 dated July 6, 2022)
1	Gasoline, excluding ethanol	liter	1,000-4,000	1,000
2	Jet fuel	liter	1,000-3,000	1,000
3	Diesel oil	liter	500-2,000	500
4	Kerosene	liter	300-2,000	300
5	Fuel oil	liter	300-2,000	300
6	Lubricating oil	liter	300-2,000	300
7	Lubricating grease	kg	300-2,000	300

The global crude oil price used for applying the above-mentioned EPT rates is determined based on the average global crude oil price of the last 10 days (traded on the Singapore market as published by Platt's Singapore) before adjusting the EPT rates for petrol and oil products lubricants by 2 days (this regulation ensures that state management agencies have time to announce specific EPT rates and retail gasoline prices).

Determining crude oil prices on the above principle aims to facilitate price monitoring and determination while ensuring that the tax rate for the next period aligns closely with the global crude oil price at the time of adjustment.

Application of Specific EPT Rates for petrol and oil products Lubricants on a Quarterly Basis

The draft regulation on the application of specific EPT rates for petrol and oil products lubricants in 2023 is as follows:

- Regarding specific EPT rates for petrol and oil products lubricants from the effective date of this Resolution until March 31, 2023 (first period): To immediately apply EPT rates for petrol and oil products lubricants when the Resolution becomes effective (from January 1, 2023), it is proposed to specify in the Resolution the specific EPT rates for petrol and oil products lubricants from January 1, 2023, until March 31, 2023. These tax rates will be decided by UBTVQH at the session approving the Resolution based on the global crude oil prices determined under principle (i) mentioned above (the average global crude oil price of the last 10 days traded on the Singapore market as published by Platt's Singapore) 2 days before the UBTVQH session.

- For specific EPT rates for petrol and oil products lubricants from April 1, 2023, until December 31, 2023 (three succeeding periods): Based on the EPT rates for petrol and oil products lubricants according to the global crude oil price scenarios mentioned in principle (i) above to apply specific EPT rates for petrol and oil products lubricants every quarter from April 1, 2023, to December 31, 2023.

Specifying the quarterly application of specific EPT rates for petrol and oil products lubricants aims to ensure flexibility and promptness while not significantly affecting the production and business plans of petrol and oil companies and the management of petrol prices (not causing considerable price fluctuations) in 2023.

The EPT rates for petrol and oil products lubricants from January 1, 2024, will be implemented according to the provisions of Section I, Clause 1, Article 1 of Resolution No. 579/2018/UBTVQH14 dated September 26, 2018, of UBTVQH on the Schedule for EPT rates.

Please read the full draft and provide feedback here.

Lan Phuong

According to the Government Portal of Vietnam

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