VCCI proposes to remove special consumption tax on gasoline

The Vietnam Federation of Commerce and Industry (VCCI) continues to propose that the Drafting Agency of the Law on Special Consumption Tax (amended) study the removal of special consumption tax on gasoline because this is not a luxury item.

VCCI recommends that the Ministry of Finance should remove special consumption tax on gasoline.

The Vietnam Confederation of Commerce and Industry (VCCI) has just sent a document to the Ministry of Finance to comment on the draft Law on Special Consumption Tax (amended). In it, this unit requested the drafting agency to consider removing the special consumption tax on gasoline.

VCCI argues that gasoline is subject to two taxes at the same time that limit consumption: special consumption tax and environmental protection tax.

" Gasoline is not a luxury item, so imposing a special consumption tax on this item is also to protect the environment. Therefore, we suggest that the drafting agency consider removing this tax on domestic fuel. If necessary, the authorities can adjust the environmental protection tax to suit the objectives of this tax," VCCI suggested.

Currently, the special consumption tax rate applied to gasoline is 10%, E5 gasoline 8% and E10 gasoline 7%; oil is not subject to this tax.

RON 95-III gasoline is currently at 22,880 VND, diesel 20,320 VND. Thus, in each liter of gasoline there is currently more than 2,000 VND in special consumption tax (price calculated before VAT).

At the same time, each liter of gasoline sold is also subject to environmental protection tax of 2,000 VND, E5 is 1,900 VND and diesel is 1,000 VND.

VCCI has repeatedly proposed to remove the special consumption tax on gasoline. However, the Ministry of Finance has expressed the view that the special consumption tax on gasoline is appropriate and cannot be removed in the context of fighting climate change and committing to reduce net emissions to zero by 2050.

Every year, Vietnam consumes about 25-26 million m3/ton of all kinds of gasoline and oil. According to data from the Ministry of Industry and Trade , in the first half of this year, the whole country consumed about 13.2 million m3/ton of gasoline and oil, a slight decrease compared to the first 6 months of 2023.

In addition to the above proposal, VCCI also has a proposal related to special consumption tax on tobacco, sugary drinks, beer and wine. This unit said that it and businesses agree with the viewpoint of using special consumption tax policy to protect people's health, limiting the consumption of harmful products such as alcohol and tobacco.

"However, it is recommended that the drafting agency research and propose a roadmap for tax increases on alcohol and tobacco that is more suitable to the production and business situation of enterprises, prioritizing options with a more stable tax increase rate. At the same time, consider the impact of including soft drinks in the 10% taxable category," VCCI proposed.

Source: https://baodautu.vn/vcci-de-xuat-bo-thue-tieu-thu-dac-biet-doi-voi--xang-d220898.html