VCCI manufactured the proposal when providing suggestions to the draft resolution on the environmental security tax applied to petrol, oil and lubricant compiled by the Ministry of Finance (MOF).

The firm agreed with the urgency of the reductions of tax obligations on petroleum products. It claimed this is the basis for Vietnam to suppress inflation, stabilize the macro financial system, support business enterprise and recuperate the economic system. 

Regarding the environmental defense tax, VCCI claimed the reduce can be carried out in July 2022 simply because this is inside of the competence of the Countrywide Assembly’s Standing Committee. This is the benefit of the measure to modify petroleum costs.

VCCI supports the MOF’s proposal on cutting the environmental safety tax by VND500-1,000 per liter, indicating that these are the sharpest possible tax cuts within the competence of the committee. 

If the Governing administration needs to minimize luxury tax and benefit included tax (VAT), it would have to wait for the following National Assembly session, slated for late 2022. If so, the plans of managing inflation and stabilizing the macro economic system this calendar year would be unattainable.

VCCI has proposed that MOF proceed to research and take into consideration the achievable influence of the luxury tax removing on petrol and report to the Nationwide Assembly’s subsequent session.

Pertaining to the chopping of tariffs on petroleum merchandise, VCCI noted that MOF has not clearly described why it has not selected  the measure. The evaluate can be simply taken as it is in the competence of the Authorities and it can be completed in July. 

In accordance to VCCI, in its assertion, MOF outlined Vietnam’s commitments in free trade agreements (FTA), and believes that Vietnam should not adjust FTA tax rates on petroleum items, and must continue on to implement the present tax slice roadmap.

Nonetheless, VCCI checked the agreements and understood that these are commitments on maximum import tax costs that Vietnam is allowed to implement. 

It affirmed that the FTAs let Vietnam to decrease import tariffs and then raise the tariffs back again to the committed amounts when necessary.

VCCI has asked MOF to consider slicing import tariffs or give extra in depth explanation about measures to pressure petrol prices down.

The petrol cost is now at an all-time higher following the latest price enhance on June 21. One liter of E5 RON92 is VND31,300 per liter, though RON 95-III is VND32,870 for each liter.

Gia Hung

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